2. Calculate approximately how much money an older (65+) household with an annual income of $45,000 spends on housing each year. (Hint: Use Exhibit 14-2) 3. Gene and Dixie, husband and wife (ages 35 and 32), both work. They have an adjusted gross income of $95,000 in 2017, and they are filing a joint income tax return. Both have an employer-provided retirement plan at work. What is the maximum IRA contribution they can make? How much of that contribution is tax deductible? 4. You have $100,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. How many dollars in withdrawals per month would reduce this nest egg to zero in 20 years? How many dollars per month can you withdraw for as long as you live and still leave this nest egg intact? (Hint: Use Exhibit 14-7.) 5. The date death for a widow was 2017. If the estate was valued at $7.5 million and the estate was taxed at 40 percent, what was the heir's tax liability? Previous Next 2. Calculate approximately how much money an older (65+) household with an annual income of $45,000 spends on housing each year. (Hint: Use Exhibit 14-2) 3. Gene and Dixie, husband and wife (ages 35 and 32), both work. They have an adjusted gross income of $95,000 in 2017, and they are filing a joint income tax return. Both have an employer-provided retirement plan at work. What is the maximum IRA contribution they can make? How much of that contribution is tax deductible? 4. You have $100,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. How many dollars in withdrawals per month would reduce this nest egg to zero in 20 years? How many dollars per month can you withdraw for as long as you live and still leave this nest egg intact? (Hint: Use Exhibit 14-7.) 5. The date death for a widow was 2017. If the estate was valued at $7.5 million and the estate was taxed at 40 percent, what was the heir's tax liability? Previous Next