Question
18. Ralph has a $130,000 IRA with the Red Association. For personal reasons, he decides to move his funds to the Blue Association. He requests
18. Ralph has a $130,000 IRA with the Red Association. For personal reasons, he decides to move his funds to the Blue Association. He requests that his funds be distributed to him on August 20, 20xx.
a. What amount will Ralph receive from the Red Association? b. What is the last day Ralph can deposit the funds from the Red Association and avoid taxation in the current year? c. If the funds were distributed from a qualified retirement plan (not an IRA), how much would Ralph receive? d. Assuming the funds were distributed from a qualified retirement plan, not an IRA, how much will Ralph have to contribute to the Blue Association to avoid taxable income and any penalties?
19. For 2015, Betsy and Bob, ages 62 and 68, respectively, are married taxpayers who file a joint tax return with AGI of $48,000. During the year they incurred the following expenses:
Medical insurance premiums | $3,000 |
Hospital bills (knee replacement for Bob) | $2,300 |
Hospital bills (face lift for Betsy) | $2,600 |
Doctor bills | $ 750 |
Dentist bills | $ 125 |
Eyeglasses | $ 340 |
Acupuncture treatments (for Bob's knee pain prior to his operation) | $ 300 |
In addition, their insurance company reimbursed them $3,000 for the above expenses.
Calculate Betsy and Bob's deduction for medical and dental expenses for 2015.give the computation
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