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3 years ago

Which statement describes the effect of taxes on a traditional 401(k) retirement account?

Business

2 answers:

kipiarov [429]3 years ago

6 0

Answer:

C. A traditional 401(k) is tax deferred because the income earned isn’t taxed until the money is withdrawn.

Explanation:

PLATO

Inga [223]3 years ago

3 0

Answer:

A traditional 401(k) is tax deferred because the income earned isn't taxed until the money is withdrawn.

Explanation:

There are two types of 401 k plans: traditional 401k and Roth 401k plans. The difference is the way there are taxed.

The traditional 401k plan is an employer-sponsored retirement scheme. The employer withholds the employee contributions and remits the funds to the employee's 401k savings account. The amount deducted as the employee contribution is not subject to taxation at that point. Contributions to 401k plans reduce the employee's taxable income.

The amounts saved in a 401k plan are invested and generate income. Employees are not expected to pay taxes on the income generated every financial period. All taxes are deferred until the time of withdrawal.

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Buying the beneficiary position on a life insurance policy of someone who is dying

MaRussiya [10]

Buying the beneficiary position on a life insurance policy of someone who is dying is referred to as Viatical Settlement

Explanation:

Viatical settlement refers to the sale of a life insurance policy by the owner to a third party for a amount which is more than its surrender value but less than its net death benefit.

Viatical settlement provides the policy owner with a lump some amount of money.

The viatical settlement is tax-free as per the Health Insurance Portability and Accountability Act (HIPAA) 1996

6 0

3 years ago

Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivab

Zigmanuir [339]

Answer:

(a) Barton's investment

Date Account Titles and Explanation Debit Credit

Accounts receivables $44,900

($48,000 - $3,100)

Equipment $90,000

Allowances for uncollectible $1,300

Barton Capital $133,600

(To record Barton's contribution)

(b) Fallows' investment

Date Account Titles and Explanation Debit Credit

Cash $28,700

Merchandise Inventory $60,500

Fallow Capital $89,200

(To record Fallow's contribution)

3 0

4 years ago

There are three consecutive steps in a customer service process. The first two steps are each capable of serving 25 customers pe

MakcuM [25]

Answer:

If the first two steps are run at full capacity, then the third step has a waiting line.

Explanation:

Waiting line is defined as a line of people or vehicles waiting for something. Hence, if the first two step runs in a full capacity been able to serve 25 customers per hour. Meaning for each hour 50 customers will be attended to by the two, then the third will surely be on a waiting line.

3 0

3 years ago

Mensa is a society for "geniuses." one way to qualify for membership is having an iq at least 2.5 standard deviations above aver

7nadin3 [17]

According to the scale, an average person would posses the mean of 100 IQ and standard deviation of 15. If to be a member of mensa one should have an iq at least 2.5 standard deviations above average, the minimum iq should be:

2.5 = (x-100)/15

x = 137.5 >>>>> Less than 1% population belong to this IQ group or higher.

7 0

3 years ago

Read 2 more answers

Mike and Mary Jane Lee have a yearly income of $79,352 and own a house worth $102,100, two cars worth a total of $ 19,907 and fu

77julia77 [94]

Answer:

Total assets $

Building 102,100

Motor vehicle 19,907

Furniture 10.442

Total assets 132,449

Total liabilities $

Mortgage loan 58,347

Outstanding loan 2,567

Utility bills unpaid 242

Total liabilities 61,156

Debt ratio = Total liabilities x 100

Total assets

Debt ratio = $61,156 x 100

$132,449

Debt ratio = 46.17%

Explanation:

In this case, there is need to calculate the total assets, which is the aggregate of building, motor vehicle and furniture.

We also need to calculate the total liabilities, which is the aggregate of mortgage loan, car loan outstanding and utility bills unpaid.

Debt ratio is obtained by dividing total liabilities by total assets multiplied by 100.

8 0

3 years ago