8 . Donna owns Conquest Deliveries, a sole proprietorship, which sponsors a qualified profit sharing plan. The company will make a 25% of compensation contributi on on behalf of each employee (including Donna) for the year. If Donna's net self-employment income is $175,000 and her self-employment taxes t otal $16,000, what is the maximum contribution to the profit sharing plan on her behalf?

(a) $31,800 .

(b) $33,400.

(c) $39,750 .

(d) $41,750 .

9. Vicki has a vested account balance in her employer-sponsored profit sharing plan of $25,000 . Upon her termination from the plan sponsor, she elected to take a full distribution from the plan. If Vicki does not rollover the entire $25,000 to an IRA (or other qualified plan) wi thin 60 days she will only be subjected to tax on 80% of the distribution.

(a) True

(b) False

10 .Which of the following is not a requirement for the owner of corporate stock who sells to an ESOP to qualify for the no recognition of gain treatment?

(a) The ESOP must own at least 55% of the corporation's stock immediately after the sale.

(b) The owner must reinvest the proceeds from the sale into qualified replacement securities within 12

Months after the sale.

(c) The ESOP may not sell the stock within three years of the transaction unless the corpor ation is sold.

(d) The owner must not receive any allocation of the stock through the ESOP.

11. Marcus, age 61, is a participant in a stock bonus plan. The value of the employer stock contributions to the plan over the course of his participation totaled $165,000. On December 1, 2013, Marcus takes a full distribution of the emp l oyer stock from the plan at a value of $550 , 000. Fourteen months later, Marcus sells all of the stock for $400,000. Which of the following statements is true?

(a) Marcus has a long-term capital gain of $385 , 000 for 2013.

(b) Marcus has ordinary income of $165,000 i n 2013.

(c) Marcus has a long-term capital loss of $150,000 ln

2014.

(d) Marcus has ordinary income of $165, 000 and long-term capital gai n of $385,000 in 2013.

12 . Which of the following qualified p~an distributions will be subjected to a 10% early withdrawal penalty?

(a) Lonnie, age 35, takes a $100,000 distribution from his profit sharing plan to pay for his son's college tuition.

(b) Carolyn, age 56, was Corporation. Carolyn takes from the UBEIT retirement

terminated from UBEIT a $125 , 000 dist ribut ion plan to pay for living

expenses .

(c) Brad, age 47, takes a $1, 000,000 distri bution from his employer's profit sharing plan. Six weeks after receiving the $800,000 check (reduced for 20% withholding) , Brad deposited $1, 000,000 into a new IRA account .

(d) Tara, age 22, begins taking equal distributions her life expectancy from her qualified plan. annual distribution is $2,000.

over The