Purpose

This assignment is intended to help you learn to do the following:

• Identify other tax-advantaged plans.
• Compare and contrast qualified plans with other tax-advantaged plans.
• Explain how SIMPLEs work and when they should be considered.
• Compare the similarities and differences between 403(b) plans and 401(k) plans.
• Describe how the deferral limits for SIMPLEs, SARSEPs, 401(k) plans and 403(b) plans work together.
• Differentiate between private and public eligible 457 plans as well as ineligible 457 plans.

Action Items

1. Make sure that you study Chapter 10 in the textbook before you start working on this assignment.
2. Respond to the following questions in Chapter 15 of your textbook:
   1. Item Set 5: ISOs and NQSOs Questions 1-6.
   2. Item Set 6: Qualified Plan Rules Questions 1-8.
   3. Item Set 7: 403(b) Plans Questions 1-2.

ITEM SET 5: ISOS AND NQSOS Dottie is the CEO of Chaos Baseball Equipment, Inc. (Chaos). It is a rapidly growing publicly traded company. She was awarded the following stock options from her company: During Year 5, Dottie had the following transactions regarding the above stock options: 1. How much income would Dottie have when her ISOs are granted? Answer. 2. What are the tax implications for the A options during Year 5 ? Answer: 3. What are the tax implications for the B options during Year S? Answer: 4. What are the tax implications for the C options during Year 5 ? Answer: 5. What are the tax implications for the D options during Year 5? Answer: 6. Over the last five years, Dottie's salary has increased from $450,000 to $900,000 and her annual bonus has increased to $400,000 as the market value of the company has increased. What are some of the tax implications