Free Samples
LAW100 Business Law
.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}
LAW100 Business Law
0 Download2 Pages / 354 Words
Course Code: LAW100
University: Polytechnic Institute Australia
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Question:
“Tax Consequences” Please respond to the following:
Discuss the various tax consequences of payments made to different types of retirement plans and recommend a retirement plan to your 50-year-old single client who earns $100,000 a year. Provide support for your recommendations.
Answer:
There are various types of retirement plans with different contribution and distribution rules as well as tax consequences. For instance, a 401 (k) is a defined contribution plan sponsored by the employer, and contributions are generally made with a pre-tax dollar amounts. This means that an individual does not pay taxes until he or she withdraws the funds. A traditional Individual Retirement Account (IRA) is another retirement plan that is usually established with a financial institution such as a brokerage or bank (Lurie, 2008). Money contributed may be deducted on an individual’s tax returns up to the limits of contributions. In this plan, contributions are generally made with pretax dollars and an individual only pays tax on withdrawal. However, in a Roth Individual Retirement Account (IRA), an individual is allowed to make contributions up to a specific amount but the contributions made are usually taxed as income and cannot be deducted. However, qualified distributions from this retirement plan are tax-free and are not considered part of taxable income (Power, 2008).
A Simplified Employee Pension (SEP) plan is another type of traditional Individual Retirement Plan that is owned by the employee. It is however set up by employers to enable their employees make contributions and receive the associated tax benefits. These contributions are usually made with tax-free deferrals of salary and earnings are not taxed unless distributions are made. Savings Incentive Match for Employees (SIMPLE) IRA is another retirement plan offered to employees working in small companies. In this plan, contributions are made from withdrawals of pre-tax paychecks, and the earnings are tax-deferred till employee’s retirement (Lurie, 2008).
For a 50-year-old single client earning $100,000 a year, participating in a retirement plan that has a catch-up contribution feature is an attractive choice. It is therefore recommended that the client should choose participating in a 401(k) plan since it would help him in adding significantly large amounts to his nest egg annually (Power, 2008).
References
Lurie, A. D. (2008). Bender’s federal income taxation of retirement plans. Newark, NJ: LexisNexis.
Power, T. (2008). Superannuation: Planning your retirement for dummies. Milton, Qld: John Wiley & Sons.
Free Membership to World’s Largest Sample Bank
To View this & another 50000+ free samples. Please put
your valid email id.
Yes, alert me for offers and important updates
Submit
Download Sample Now
Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.
UploadUnique Document
DocumentUnder Evaluation
Get Moneyinto Your Wallet
Total 2 pages
PAY 1 USD TO DOWNLOAD
*The content must not be available online or in our existing Database to qualify as
unique.
Cite This Work
To export a reference to this article please select a referencing stye below:
APA
MLA
Harvard
OSCOLA
Vancouver
My Assignment Help. (2021). Business Law. Retrieved from https://myassignmenthelp.com/free-samples/law100-business-law/distribution-rules-as-well-as-tax-consequences.html.
“Business Law.” My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/law100-business-law/distribution-rules-as-well-as-tax-consequences.html.
My Assignment Help (2021) Business Law [Online]. Available from: https://myassignmenthelp.com/free-samples/law100-business-law/distribution-rules-as-well-as-tax-consequences.html[Accessed 19 December 2021].
My Assignment Help. ‘Business Law’ (My Assignment Help, 2021)
My Assignment Help. Business Law [Internet]. My Assignment Help. 2021 [cited 19 December 2021]. Available from: https://myassignmenthelp.com/free-samples/law100-business-law/distribution-rules-as-well-as-tax-consequences.html.
×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}
×
Thank you for your interest
The respective sample has been mail to your register email id
×
CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.
Account created successfully!
We have sent login details on your registered email.
User:
Password:
Myassignmenthelp.com has the best team of writers for primary level homework help service. We intend to share the load of homework on children so that they can engage in recreational activities. With some of the best ghostwriters at the rescue, kids can now spend time playing. We have proved ourselves time and again why we are considered one of the best essay writer services. We also offer help for college-level papers.
Latest Business Law Samples
div#loaddata .card img {max-width: 100%;
}
BU1112 Business Law
Download :
0 | Pages :
6
Course Code: BU1112
University: James Cook University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answer:
Part A
Issue:
Whether Stella is considered as an employee of PRX?
Rule:
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Read
More
Tags:
Australia South Lake Management health finance management University of New South Wales
BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :
15
Course Code: BSBWHS605
University: Swinburne University Of Technology
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Read
More
Tags:
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA
BUSN331 Business Law
Download :
0 | Pages :
3
Course Code: BUSN331
University: Centennial College
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Canada
Answers:
Introduction
In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Read
More
Tags:
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration
LA1040 Contract Law
Download :
0 | Pages :
11
Course Code: LA1040
University: University Of London
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: United Kingdom
Answer:
Introduction
A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
Read
More
Tags:
United Kingdom London Economics Management University of London
TLAW202 Corporations Law
Download :
0 | Pages :
9
Course Code: TLAW202
University: Top Education Institute
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
1.
If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity. (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …
Read
More
Next
