QUESTION 1 Stretch IRAs do which of the following? 0 Help an IRA owner avoid req

Question

QUESTION 1 Stretch IRAs do which of the following? 0 Help an IRA owner avoid required minimum distributions. Help an IRA owner transfer assets to his or her spouse so as to avoid the minimum distribution rules. O Help extend the payout period for beneficiaries. O All of the above. QUESTION 2 Which of the following is correct regarding converting traditional IRA funds to a Roth IRA? O Only taxpayers with AGI less than $100,000 may convert traditional IRA funds to a Roth IRA. O The conversion is tax and penalty free if done as a direct rollover. The conversion can be recharacterized if done before the due date of the tax return (including extensions). None of the above QUESTION 3 Which of the following statements concerning the Social Security system is (are) correct -1-Workers entitled to retirement benefits can currently take early retirement benefits as early as age 55 if they are separated from service. -2-A worker who takes early retirement benefits will receive a reduced benefit because he or she is expected to receive more monthly benefit payments, as payments commence earlier than if the worker had waited and retired at full retirement age. O 1 only. O2 only. OBoth 1 and 2. Neither 1 nor 2. QUESTION 4 Reese, who is 66 years old, wants to create a stretch IRA. To obtain the greatest stretching of her IRA assets, who should Reese name as her primary beneficiary? Her mom, age 84. Her sister, age 64. Her daughter aae 4n Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save Al A

Explanation / Answer

1. stretch IRA, is better than the traditional IRA as they allow the owner to have minimum distributions on an IRA by stretching it and naming it after the childern, grandchildren and great grand children. Yes it allows the stretch the life span of an IRA to several years and decades. You can also tranfer the IRA in the name of your spouse which can take the require benefits and also roll over the IRA in the name of grandchidren.so teh correct option is all of the above.

2.

Only tax payers with income less than $1,00,000 can convert the traditonal into ROTH,but now the rules have changed and tehre is no income cap,as long as the people converting pay a tax on conversion.

at the time of converion ,to ROTH IRA, we have to create a backdoor ROTH IRA and we have to pay income tax on conversions . If we see out income levels falling in the future, then we may convert our IRA,into a ROTH IRA and enjoy tax free income and save a lot of money in the long run.

so the correct option is none of the above.

3. Both statements are incorrect . The correct age to reciev social security benefits is age 67, if you retire early you will be receiving less monthly benefits ,as you will be recieving benefits for four additional years than the benefits that you would have received if retired at 67. as the monthly benefits will be reduced.

unless you are disabled you a never recieve social security beneifts as early as age 55. The earliest age to start receiving social security benefits is at age 62.

4.If they want a maximum stretch then the primary beneficiary should be their daughter who is age 40.

the correct option is option c.

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