Numbers And Dates

Question 1

Fraud penalty for tax underpayment

Answer 1

75% of the tax underpayment

Question 2

Tax penalty for underpayment due to negligence or substantial understatement of income

Answer 2

20% of underpayment

Considered severe understatement If exceeds the greater of $5k or 10% of the correct tax

Question 3

Penalty for non qualified distribution from HSA

Answer 3

20% & Income Tax

Question 4

At what age will HSA penalty be waived

Answer 4

65

Still taxable if non qual expense

Question 5

Qualified group Life Insurance

• Minimum group size
• % of ee’s it must benefit

Answer 5

• 10

- 70% of all ee’s, or group consisting of 85% non-key ee’s, or 125 cafeteria plan

Question 6

Must offer COBRA with how many ee’s

Answer 6

20

Question 7

Days before ST disability starts if Illness

Answer 7

8th day

First day when disability is related to an accident

Question 8

To be excluded from income, services can not be discounted more that what %

Answer 8

20%

Question 9

Section 415 limit for defined contribution plans

Answer 9

$61,000

Question 10

Simple IRA

• penalty %
• penalty assessed if w/d in first __ years

Answer 10

• 25%

- 2 yrs

Question 11

Skip person age gap

Answer 11

37.5 years

Question 12

Gift tax on first $1,000,000

Answer 12

$345,800