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14. Ron Junger is 66 years of age and has just retired from his real estate sales position after 25 years. Ron's planner has determined
14. Ron Junger is 66 years of age and has just retired from his real estate sales position after 25 years. Ron's planner has determined that Ron should be able to start retirement with a 4% withdrawal rate. Ron will not apply for Social Security until age 70 and expects that his total income will at that time increase over his income for the first four years of retirement. Ron would like to hold onto assets for later sale that would cause little or no taxes when sold, and he will liquidate assets for the first year that will result in higher income taxes. From which of the following assets should Ron take distributions in the first year? (A) (B) (C) (D) Corporate bond mutual fund Roth IRA Traditional IRA (rollover from 401(k) plan) S&P 500 fund in brokerage account 15. Ross, Jan, and Harry are the three owner-members of an LLC that develops software for small businesses. The LLC rents offices in a building where it has operated for 10 years and has several employees. All three owners would like currently to arrange to dispose of their business in a way to provide themselves with retirement income. They do not have a qualified retirement plan at their business. All three would like to continue to receive income from the business in retirement. The three owners are brothers and are considering a sale to family members. Which of the following would accomplish their objectives best? (A) (B) (C) (D) Recapitalization with preferred and common stock Lease real estate to the business Consulting services to the business after sale A cross-purchase buy sell agreement
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