Which of the following are characteristics of a Roth IRA?

Select one:

a. There are no minimum distributions required for a Roth IRA.

b. Most distributions made before age 59 are subject to a 10 percent penalty tax.

c. Both are characteristics.

d. Neither is a characteristic.

What is the maximum deductible contribution that Erick (age 32 and single) can make in 2018 to an Individual Retirement Account(s) if he earns $62,000 and is not covered by an employer-sponsored retirement plan?

Select one:

a. $5,500 to a traditional IRA but only $1,500 additional to a Roth IRA

b. $4,500 to a traditional IRA due to the income limitation

c. $6,500 ($5,500 plus an extra $1,000 catch-up contribution) to a traditional IRA and zero to a Roth IRA.

d. $5,500 to a traditional IRA

Which of the following is not a reason for a business to prefer to hire an independent contractor rather than an employee?

Select one:

a. The company does not have to pay FICA taxes on the amounts paid to the independent contractor.

b. The company does not have to supply a workplace or tools to the independent contractor.

c. The company only has to pay FUTA on the independent contractor's wages.

d. The independent contractor does not participate in company fringe benefits.

During 2018, Lee Corporation paid Nicole a salary of $118,000 and a bonus of $20,000. How much (rounded to the nearest dollar) is Lee Corporation required to withhold from Nicoles compensation for her share of FICA taxes?

Select one:

a. $10,557

b. $2,001

c. $7,961

d. $9,962

Which of the following would not be considered a de minimis fringe benefit?

Select one:

a. Free morning coffee

b. A holiday turkey

c. A company picnic

d. A $10 Christmas bonus