Asked by Bulut Yasin on Jun 28, 2024
Verified
Hamden is entitled to receive monthly payments of $6,000 over his life from his employer's qualified pension plan.The payments begin January 1,2017.He contributed $286,000 to the plan prior to his retirement at age 62.Using the simplified method,what amount of the payments will be excluded from Hamden's taxable income for 2017?
A) $0.
B) $13,200.
C) $58,800.
D) $72,000.
Qualified Pension Plan
A retirement plan that meets the requirements of the Internal Revenue Code, offering tax benefits to the entity that establishes the plan and its participants.
Simplified Method
A way to calculate tax deductions or credits that reduces complexity, often used for retirement distribution calculations or home office deductions.
Taxable Income
The amount of income used to determine how much tax an individual or a corporation must pay to the government in a given tax year.
- Become familiar with the fiscal treatment of dispersals from retirement accounts and annuities.
- Appreciate the impact of age and job status on the funding and disbursement of retirement plans.
Verified Answer
Learning Objectives
- Become familiar with the fiscal treatment of dispersals from retirement accounts and annuities.
- Appreciate the impact of age and job status on the funding and disbursement of retirement plans.
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