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31 Cards in this Set

  • Front
  • Back
When on a Municipal Bond, do you pay Federal Income tax on ordinary income for accretion?
When it is a Market Discount Bond.
Whatever percentage of Keogh contribution the boss makes, he must _______.
make the same contribution for his employees.
Short term capital gains are taxed at ____ ____ rates. Long term capital gains are taxed at the maximum rate of ___.
ordinary income;

What does ERISA stand for?
Employee Retirement Income Security Act
If one overcontributes to their Keogh Plan, there is a ____ Cumulative Penalty tax on the excess.
The maximum contribution on a Keogh plan is what?
25% of "self employment" earned income or $30,000 whichever is less.
There are two types of pension plans what are they?
1. Defined Contribution: the contribution is predetermined, the retirement benefits are uncertain.
2. Defined Benefit Plan: A certain benefit is targeted for and actuarial calculations are required to determine the contributions necessary to reach the target.
You have a short term capital gain on securities if they have been held for ____ or less.
12 months
The date of acquisition, to determine long-term status is the _____, not the settlement date.
In a Keogh Plan, one is fully vested in __ years.
How does a Simple Plan work?
An employee can contribute up to $6,000 per year by reducing his salary and the employer can match.
A business is not qualified for a simple plan if they have any other ______, or more than ____ employees.

There is a ___ penalty if one takes a distribution before they are age 59 1/2.
10% tax
What does acronym in SIMPLE Plan stand for?
Savings Incentive Match Plan for Employees
On an IRA payment can't start before age ____ and start no later than ____.
59 1/2

70 1/2
The maximum capital gains loss that can be written off in any year is _____.
Securities acquired through a gift assume the ____ basis for tax purposes.
Short sales are always ____ ___ gains or losses.
short term
Interest received from bonds of the US Govt and most of its agencies are exempt from ___ tax but not from ___ tax.

There is no differences between the deductability of ST or LT capital losses except ____________.
the ST are taken first.
Conversion of a bond into common stock is/is not a taxable event because ____.
is not;

no money changes hands.
A pension plan requires an annual contribution whether or not _____.
the firm makes any money that year.
All gains from inheritance are treated as ___ ____.
long term
The heir acquires the stock of an inheritance at their value as of ______. This is called ____ ___ ____.
date of death.

stepped up basis
When selling stock acquired over years through the payroll deduction plan, the IRS will generally use ____ to determine which stocks held for what period were sold.
FIFO, First In First Out
FIFO does not always result in the most favorable tax consquences and the IRS also allows the _____ _____ method.
identified stock
There is a ___% dividend exclusion for corporations.
Interest from municipal bonds is exempt from ____ tax but not ___ tax. The one instance interest is exempt from state and federal taxes is when ____.


The bond was issued by a municipality of your state of residence.
If payments after attaining 70 1/2 are deemed insufficient, there is a tax penalty of ___ on the insufficient distribution.
Interest on FNMA, GNMA, and Sallie Mae are/are not taxable on state and federal levels.
The corporate income tax rate tops off at ____% of taxable profit.