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31 Cards in this Set
- Front
- Back
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When on a Municipal Bond, do you pay Federal Income tax on ordinary income for accretion?
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When it is a Market Discount Bond.
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Whatever percentage of Keogh contribution the boss makes, he must _______.
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make the same contribution for his employees.
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Short term capital gains are taxed at ____ ____ rates. Long term capital gains are taxed at the maximum rate of ___.
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ordinary income;
28% |
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What does ERISA stand for?
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Employee Retirement Income Security Act
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If one overcontributes to their Keogh Plan, there is a ____ Cumulative Penalty tax on the excess.
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10%
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The maximum contribution on a Keogh plan is what?
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25% of "self employment" earned income or $30,000 whichever is less.
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There are two types of pension plans what are they?
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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. |
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You have a short term capital gain on securities if they have been held for ____ or less.
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12 months
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The date of acquisition, to determine long-term status is the _____, not the settlement date.
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trade
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In a Keogh Plan, one is fully vested in __ years.
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5
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How does a Simple Plan work?
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An employee can contribute up to $6,000 per year by reducing his salary and the employer can match.
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A business is not qualified for a simple plan if they have any other ______, or more than ____ employees.
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qualified;
100 |
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There is a ___ penalty if one takes a distribution before they are age 59 1/2.
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10% tax
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What does acronym in SIMPLE Plan stand for?
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Savings Incentive Match Plan for Employees
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On an IRA payment can't start before age ____ and start no later than ____.
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59 1/2
70 1/2 |
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The maximum capital gains loss that can be written off in any year is _____.
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$3,000
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Securities acquired through a gift assume the ____ basis for tax purposes.
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donor's
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Short sales are always ____ ___ gains or losses.
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short term
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Interest received from bonds of the US Govt and most of its agencies are exempt from ___ tax but not from ___ tax.
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state
Federal |
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There is no differences between the deductability of ST or LT capital losses except ____________.
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the ST are taken first.
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Conversion of a bond into common stock is/is not a taxable event because ____.
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is not;
no money changes hands. |
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A pension plan requires an annual contribution whether or not _____.
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the firm makes any money that year.
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All gains from inheritance are treated as ___ ____.
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long term
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The heir acquires the stock of an inheritance at their value as of ______. This is called ____ ___ ____.
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date of death.
stepped up basis |
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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.
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FIFO, First In First Out
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FIFO does not always result in the most favorable tax consquences and the IRS also allows the _____ _____ method.
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identified stock
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There is a ___% dividend exclusion for corporations.
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70%
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Interest from municipal bonds is exempt from ____ tax but not ___ tax. The one instance interest is exempt from state and federal taxes is when ____.
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Federal;
State; The bond was issued by a municipality of your state of residence. |
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If payments after attaining 70 1/2 are deemed insufficient, there is a tax penalty of ___ on the insufficient distribution.
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50%
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Interest on FNMA, GNMA, and Sallie Mae are/are not taxable on state and federal levels.
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are
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The corporate income tax rate tops off at ____% of taxable profit.
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35
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