1-

Jody is a physician (not covered by a retirement plan) with a salary of $40,000 from the hospital where she is employed. She supports her husband, Andre, who sells art work and has no earned income. Both are in their twenties. What is the maximum total amount that Jody and Andre may contribute to their IRAs and deduct for the 2016 tax year?

a.$5,500

b.$10,000

c.$5,000

d.$11,000

e.None of these choices are correct.

2-

Jim lives in California. What is Jim's deadline for making a contribution to traditional IRA or a Roth IRA for 2016?

a.April 17, 2017

b.October 15, 2017

c.April 15, 2016

d.December 31, 2016

3-

Which of the following statements is true about health savings accounts (HSAs)?

a.There is no restriction on the kind of health insurance taxpayers must carry in order to qualify for an HSA.

b.Taxpayers may take tax and penalty free distributions from HSAs to purchase automobiles after age 65.

c.Individuals taking distributions from HSAs which are not for medical expenses are subject to a 50 percent penalty.

d.Contributions to HSAs are not deductible for adjusted gross income (AGI), but are treated as an itemized deduction.

e.Distributions from HSAs are tax and penalty free when used for qualified medical expenses.

4-

Nancy has active modified adjusted gross income before passive losses of $125,000. She has a loss of $15,000 on a rental property she actively manages. How much of the loss is she allowed to deduct against the $125,000 of other income?

a.$2,500

b.$12,500

c.None

d.$5,000