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Topic 24 - Retirement Income and Rollovers

Student instructions: 

You may need acrobat reader to download forms and publications online.

Please use IRS Publication 575, California 540A / 540 Booklet and California Publication FTB 1005 to complete this topic.

Prepare  Form 1040, Form 4972 , California Form 540, Schedule CA (540), and California Schedule G-1.

    Greg, who was born in 1938, retired from Two-Seas Corporation in 2007. He withdrew the entire amount to his credit from the company's qualified pension plan. In December 2007, he received a total distribution of $180,000 ($25,000 of employee contributions plus 155,000 of employer contributions and earnings on all contributions). The payer gave Greg a Form 1099-R, which shows the capital gain part of the distribution (the part attributable to participation before 1974) to be $12,000. Greg elects the capital gain treatment for federal and California.

    Greg elects to figure the tax on the ordinary income part using the 10-year tax option for federal and California. 

Have your return prepared and ready to answer the questions. Choose one of the following two options:

Option 1: Complete Quiz online.

Instructions to submit quiz successfully: Step-by-Step check list

When prompted for your name, please enter your CTEC or Preparer Number (if you have a number) with your name as follows:  First, last name, Number (e.g. John Smith A012345 / John Smith P012345)

Print questions

Start quiz

Option 2: Complete and mail answer sheet.

If you choose not to complete the quiz by pressing "Start quiz" above, you can print questions and answer-sheet to mail to us. If you complete the online quiz, the advantage is that you get an automatic score as apposed to waiting for a response on a manually graded quiz. You can also print the questions and answer sheet and after you answered the questions on paper submit it online by choosing "Start Quiz" above.  Please don't sent answer sheet by certified mail.

Print questions         Print Answer sheet

Please Note: You must also complete the tax return for this assignment. If you turn in incomplete work, such as purposely not answering the questions regarding the return you prepared, you will not be given credit for the topic.

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Revised: 02/16/15

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