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Jim Tandy, age 65, will retire next month from Algor Industries. Last month, Jim withdrew $40,000 from his qualified retirement savings plan at work. Before the withdrawal, Jim had an account balance of $500,000. While employed at Algor, Jim made $100,000 of after-tax contributions to his retirement plan. The taxable portion of his withdrawal is

The death benefit from group-term life insurance is not tax-free to the beneficiary.

The benefit is taxable to the employee when the DBO plan is purchased.

One of the objectives of a benefit plan is to provide employee benefits that are comparable to those offered by other employers in the industry.

Jill is considering naming a bypass trust as beneficiary of her IRA after her death. Jill’s spouse is a discretionary income beneficiary of the bypass trust. Which of the following is a reason for not designating the bypass trust as beneficiary of her IRA?

If a spouse is to be the beneficiary of an IRA or a qualified plan, it is generally preferable to leave the IRA or qualified plan

Advantages of rolling a qualified plan over to an IRA include

Bob Jolly is 73 this year. He has been a key employee of Appleton Bookkeeping Services since he joined the company 50 years ago. The owner of Appleton would love it if Bob stayed on indefinitely. Bob is in excellent health and has developed a wide clientele that enjoys his wit and charm as well as his broad experience and expertise. Bob says he’ll retire at 75 “while he still has some time to enjoy retirement.” Appleton Bookkeeping established SIMPLE IRAs for employees 5 years ago. Which of the following is (are) true for Bob?

Employers can reimburse up to $20 a month tax-free for bicycle expenses to an employee who uses a bicycle to commute to work.

Harold Walters, age 39, runs a tax accounting service. He employs five people. He wants to install a defined benefit plan for himself and his employees funded with life insurance, but he wants to retain some control over the plan investments. As his financial advisor, you tell Harold that the type of funding that would best meet his requirements is a(n)