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Gerry (age 56) and Elaine (age 54) have been mamed for 12 years and file a joint tax return The couple lives in an apartment

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Gerry (age 56) and Elaine (age 54) have been mamed for 12 years and file a joint tax return The couple lives in an apartment in downtown Manhattan. Gerry's father, Mortey, recently retired from Del Boca Vista Corporation (DBVC), where he worked for many years. Mortey participated in DBVC's defined benefit plan. Elalne is an editor and works for Pendent Publishing earning an annual $150,000 salary In 2018. Gerry is a self-employed stand-up comedian, and had net business Income of $46,000 in 2018. At the advice of their neighbor, Gerry and Elaine have come to you for help in answering several retirement savings-related questions. (Use Exh 13-2. Exhibit 13-3. Exhibit 13-9) Required: a. The DBVC defined benefit plan specifies a benefit of 15 percent for each year of service, up to a maximum of 30 percent (20 years of service), of the average of the employee's three highest years of salary. Mortey worked for the company for 25 years earned $75.000, $78,000, and $84,000 over his final three years of service. What is Mortey's annual beneft from DBVCs defined benefit plan? b. Elaine has worked at Pendent Publishing since January 1, 2013. The company offers a defined contribution plan, it matches 100 percent of employee contributions to the plan up to 6 percent of her salary. Prior to 2018. Elaine had contributed $40,000 to the plan and her employer had contributed $28.000 to the plan. in 2018, Elaine contributed $17,000 to her traditional 401%1 b-1. What is the amount of her employers matching contribution for 2018? b-2. Assuming the company uses a six-year graded vesting schedule what is Elaine's vested balance in the plan at the end of 20r3 for simplicity. disregard the pian's earnings)? c. Elaine tells you that her employer has offered ner $30.000 in 10 years to defer 10 percent of her current salary (defer $15.000). Assuming that the couple's marginal tax rate is currently 32 percent they earn an after-tax rate of return of 3 percent and they expect thelr marginal tax rate to be 28 percent in 10 yeors lignoring nontax factors and payroll taxes c-1. Snouid Elaine accept her company's offer? c-2. What is the minimum amount she should be wiling to accept ignoring nontax factors and payrol taxesj? (Do not round intermediate celculetions. Round your enswer to the nearest doilar amount) make to his SEP IRA in 2018? (Do not intermedlete celcuietions. Round your enswer to the neerest doller amount.) IRA Gerry would like to pay the least amount of tax possible in roling the account over Assume the couple's marginal tav rate rry can has a SEP RA and would like to contribute as mucn as possible to this account what is the ma t round Intermedlate celculetions. Round your answer to the nearest doilar amount.) what is the maximum amount he could contribute to the plan in 2018? (Do not round e. Assuming Gerry had an individuai 401k), t. Gerry also has a treditional IRA wizn an account baiance of $42000 He would ilke to convert the traditsional IRA to a Roth g. Assume that Gerry rolled over his traditional RA into a Roth IRA six years ago (rather than n 2018) and that the account now nas a 32 percent Whotis the least amount of tax Gerry will be required to pay on the rollover? balance of $78 000 The couoie 's cons derinc buvinio theirfirst home and wouid like to oav as much down as oossible. The

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