Question

In: Finance

Lisa turned age 65 on May 29, 2019. During the year, she received distributions from her...

Lisa turned age 65 on May 29, 2019. During the year, she received distributions from her health savings account (HSA) totaling $1,227. She paid $618 on nutritional supplements and vitamins throughout the year. In March, she paid $112 to her podiatrist, and in July and August she paid $497 to her chiropractor. The penalty on Lisa's nonqualified distributions is __________. *

$22

$99

$124

$146

Mark for follow up

Solutions

Expert Solution

The penalty on nonqualified distribution vary upon one's distribution. Here, from the given information, Lisa's penalty is 20% of her nonqualified distribution. she has received a total amount of $1227 from her Health Savings Account in 29th May 2019, and before receiving the distribution, she paid $112 to her podiatrist. It will consider as nonqualified distribution. So for that, Lisa have to pay the penalty of 20% of the amount which she made. So the penalty amount on Lisa's nonqualified distribution is $22.

(112*20% =22.4, If we round this we will get $22.


Related Solutions

Casey turned age 65 May 29, 2018. During the year, she received distributions from her HSA...
Casey turned age 65 May 29, 2018. During the year, she received distributions from her HSA account totaling $728.96. She paid 369.09 for electrolytes om March 3. She paid $44.87 to her ENT doctor on June 4 and $315. to her chiropractorin July and August. The penalty on Casey's non-qualified distributions is what?
29. LO.1, 3, 6 Terri, age 16, is a dependent of her parents in 2019. During...
29. LO.1, 3, 6 Terri, age 16, is a dependent of her parents in 2019. During the year, Terri earned $5,000 in interest income and $3,000 from part-time jobs. a. What is Terri’s taxable income? b. What is Terri’s net unearned income? c. What is Terri’s tax liability?
Uma turned 25 today, that she plans to retire on her 65 th birthday , and...
Uma turned 25 today, that she plans to retire on her 65 th birthday , and that s he expects to live until her 8 0 th birthday . On her 65th birthday, she wants $ 90,000 and wants that amount to increase by 2 % every year until h er 80th birthday. In other words, she wants to make a withdrawal from her 65th birthday until her 80 th ( including her 80th birthday ). So far, she has...
In 2019, David, age 65, had adjusted gross income of $32,000. During the year he paid...
In 2019, David, age 65, had adjusted gross income of $32,000. During the year he paid the following medical expenses: Prescription medicines $200 Doctors $2,500 Medical care insurance $1,400 Over-the-counter hair growth tonic $250 What amount can David deduct as medical expenses (after the adjusted gross income limitation) in calculating his itemized deductions for 2019? a.$1,700 b.$4,100 c.$0 d.$900 e.None of these choices are correct.
Lisa Simpson, now age 20, wants to retire with $1,500,000 in her Roth IRA. She plans...
Lisa Simpson, now age 20, wants to retire with $1,500,000 in her Roth IRA. She plans to achieve this goal by depositing $3,000 at the beginning of each year at an expected annual rate of 8%. How many deposits must Lisa make in order to reach her goal? Round to the nearest deposit.
Lisa earns $65,000 per year. She is married and claims three allowances. Assume that her employer...
Lisa earns $65,000 per year. She is married and claims three allowances. Assume that her employer uses wage bracket tables method. Use withholding allowance, wage bracket table and IRS Publication 15. a.If she is paid weekly, what is her withholding per paycheck? b.If she is paid monthly, what is her withholding per paycheck? c.If she is paid biweekly, what is her withholding per paycheck? d.If she is paid semimonthly, what is her withholding per paycheck?
Y received stock as a gift from her father in 2019. Her father purchased the stock...
Y received stock as a gift from her father in 2019. Her father purchased the stock several years ago of $30,000. The stock was worth $20,000 at the time the gift was received. Y sold the stock for $18,000 in 2020. How much gain or loss, if any, should Y report on her 2020 tax return? Assume the same facts as above, except that Y sold the stock for $25,000. How much gain or loss, if any, should Y report...
jennifer is single and received $29,500 of dividend income during the year. She also received $18,00...
jennifer is single and received $29,500 of dividend income during the year. She also received $18,00 of social security benefits. what portion of her social security benefits are taxable? a. $0 b. $7,255 c. $9,000 d. $10,875
Lisa is 28 years old. She is pregnant with her first baby and decided to be a single mom. Her income last year was $10500.
Lisa is 28 years old. She is pregnant with her first baby and decided to be a single mom. Her income last year was $10500. What kind of government insurance would you recommend for her? Why? What are the benefits she will receive?
Jessica inherited a $1000 portfolio of investments from her grandparents when she turned 21 years of...
Jessica inherited a $1000 portfolio of investments from her grandparents when she turned 21 years of age. The portfolio is comprised of the following three investments:                                                 expected return                         dollar value Treasury bills                            4.5%                                        $40,000 Ford (F)                                    8.0%                                        $30,000 Harley-Davidson (HOG)            12%                                         $30,000 a. Based on the current portfolio composition and the expected rates of return, what is the expected rate of return for Jessicas portfolio? b. If Jessica wants to increase her expected portfolio rate of return, she could...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT