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Cloud [144]
3 years ago
12

What is the maximum amount a 45-year-old taxpayer and 45-year-old spouse can put into a Traditional or Roth IRA for 2016 (assumi

ng they have sufficient earned income, but do not have an income limitation and are not covered by another pension plan)?
Business
1 answer:
tangare [24]3 years ago
6 0

Answer:

$5,500 USD

Explanation:

Since traditional Roth IRA accounts cannot be owned jointly, then both individuals must have their own account. That being said they can still contribute to each other's Roth IRA accounts on behalf of their spouse. You can contribute a total of 100% of your earned income up to a limit of $5,500 USD. Pensions are not allowed as contributions. Individual's over the age of 50 have a limit of $6,500

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Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wa
Hunter-Best [27]

Answer:

It will need  $ 107,120.321 dolalr per year to achieve his retirement goal

Explanation:

We first must calcualte the prsent value of the 25 payments with equal worth of 60,000 dollar of today.

First we move the 60,000 forward 10 years

Principal \: (1+ r)^{time} = Amount

Principal 60,000.00

time 10.00

rate 0.05000

60000 \: (1+ 0.05)^{10} = Amount

Amount 97,733.68

Now, we calculate the present value of an annuity considering this 5% inflation

C_0 \times \frac{(1+r)^n-(1+g)^n}{r-g}  = PV

g 0.05

r 0.08

C 97,734

n 25

$ 1,778,492.341

Then, decrease this by the amounnt already saved by our father:

Principal \: (1+ r)^{time} = Amount

Principal 105,000.00

time 10.00

rate 0.08000

105000 \: (1+ 0.08)^{10} = Amount

Amount 226,687.12

Additional saving needed:

1,778.492-34 - 226,687.12 = 1.551.805,22

Now, we solve the annual saving to achieve this future value:

PV \div \frac{(1+r)^{time} -1}{rate} = C\\

PV 1,551,805.22

time 10

rate 0.08

1551805.22 \div \frac{(1+0.08)^{10} -1}{0.08} = C\\

C  $ 107,120.321

‬

6 0
4 years ago
Which of the following organizations would be MOST likely to face a dynamic/complex environment? a. Oracle b. Whirlpool c. JCPen
alekssr [168]

Answer:

The correct answer is letter "A": Oracle.

Explanation:

Dynamic-complex organizations are those with diverse operations that are constantly changing because of the rapid development of their industry. Firms that fall into this category are mainly technological which products tend to have a short life cycle.

Thus, <em>American cloud-solutions company Oracle can be described as one having dynamic-complex processes.</em>

8 0
3 years ago
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales
mixer [17]

Answer:

b. $3,000

Explanation:

According to the above information, the following data are given

Credit sales = $100,000

Uncollectible percentage = 3%

So, after the adjustment by using allowance method, Bad debt expense can be calculated as;

Bad debt expense = Credit sales × Uncollectible percentage

= $100,000 × 3%

= $3,000

3 0
3 years ago
A change in the quantity demanded of a good is: a. represented by a shift to a new demand curve. b. represented by a movement al
Radda [10]

Answer:

It's represented by a movement along the demand curve

3 0
3 years ago
Your friend, Alicia, is a graduating senior about to head to college in the fall. Alicia has a single checking account and is ea
kvv77 [185]

Answer:

It is good

Explanation:

Alicia would have an easier time splitting money and saving money towards different goals. Such as putting 40% of your paycheck into savings and splitting the 40% into 10% for each savings account.

6 0
3 years ago
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