Cebs Rpa 2 Exam With Complete Solutions

Keogh Plan max contribution limits under defined contribution plan {Ans: Lesser of 100% of the comp or $51k in 2013. For the Self Employed person "comp" is person's earned income from selfemployment. less one half of the self employment tax. not to exceed $255K.}Keogh Plans and Loans {Ans: Loans from Keogh plans are generally permitted due to EGTRRA.}Section 83 {Ans: Taxation of property transferred in connection with the performance of services}Elig Requirements of a Keogh Plan {Ans: 1. Only a sole proprietor (not a common law employee) or a partnership (not indiv. partner) can establish 2. If an owner employee wishes to establish & participate in a Keogh Plan he must cover ALL ees who are 21+ and have 1 year of service. A 2 yr WP can be used if the plan provides 100% vesting after 2 yrs 3. Must meet the same nondiscrimination coverage and participation requirements as other qualified plans.}Section 79 {Ans: The annual cost of insurance can represent taxable income to the employees}Constructive Receipt {Ans: Income that is not yet received is considered received and, therefore currently taxable when it is credited to an account or set aside so it