Student Question
Student Question of the Week: Retirement Planning
Student Question from: SteveCourse: Retirement Planning – SEP Employer Contributions Student Question: Dan, should the second paragraph below say, “…the lesser of 100% of covered compensation…”, and NOT 25%? Thanks! While the funding amount can be at the sponsor’s discretion, the actual contribution structure is inflexible and is generally a uniform percentage of compensation. …
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Student Question from: Natalia G.Course: Retirement Planning – Characteristics of ESOPs Student Question: Quick question – under “Recognition deferral” paragraph (below in bold), it is stated that ESOP plan participants can “defer recognition of a portion of their gains when employer securities are distributed at retirement. Participants are generally eligible to delay recognition of gain…
Read MoreStudent Question of the Week: Income Tax
Student Question from: Amanda S.Course: Income Tax – Code Section 179 Student Question: Hi there! Can you explain more about the second bullet in the blue box (shown below) regarding the $560k excess and how it works? I think I understand the first scenario in the example: $560k – $139k allowed for immediate expense =…
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Student Question from: John C.Course: Income Tax – Childcare Credit Student Question: I have a quick question about review exercise number 3 (below). It indicates that $2,100 would be the correct answer. I thought $6,000 was the maximum for two children? Are you perhaps asking for the minimum instead, or should we have assumed some…
Read MoreStudent Question of the Week: Income Tax – Gross Income Calculation
Student Question from: John C.Course: Income Tax – Gross Income Calculation Student Question: Hi. I just wanted to verify that the employee premium in the example below is not prorated between the “tax-free” and taxable insurance coverage. And, if it’s not, why? Here is my calculation: 5 x 4.5% + 7 *0.5 % = 26%…
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Student Question: Student Question from: John C. Course: Income Tax Question: I had a quick question about taxpayer return penalties. In the Review Exercise below, I’m getting an answer of $780, but you all are showing an answer of $810. Why isn’t my math adding up? I’m counting 7 months for April to October. Here is…
Read MoreStudent Question of the Week: Fundamentals – Calculator
Student Question from: Susan M.Course: Fundamentals – Calculator Student Question: In example 3 (shown below), why do we use monthly instead of annual for the interest and period of time? Example 3: Bill wants to purchase enough life insurance to provide his family with an inflation-hedged income of $4,000 per month for 25 years. You…
Read MoreStudent Question of the Week: Insurance
Student Question from: Jacky ACourse: Insurance Student Question: It says here that “Most policies will guarantee that the death benefit will never go below the face amount.” I thought that the death benefit and face amount are interchangeable terms. Is the death benefit equal to the face amount plus the cash value? Instructor Response: Very…
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Student Question from: Rachael GCourse: Income Tax Student Question: I had a couple questions in regards to tax filing penalties. 1) Since the penalty is calculated from net tax due, what happens when a taxpayer overpaid taxes and gets a refund? How is the penalty calculated? 2) Is the minimum penalty after 60 days on…
Read MoreStudent Question of the Week: Estate Planning – Gift Tax
Student Question: Question: What would happen if a person used the maximum lifetime gift exclusion of $5,120,000 in the year 2012. But the person dies in the year 2015 assuming the limit dropped to a lower amount like 1 or 2 million? The lifetime amount gifted would be higher than the current limit. Instructor Response: Answer: …
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