Max and Leah recently became grandparents. Max, age 71, is employed as an architect and earns an annual salary of $55,000. He has never set up an IRA, but he is thinking about it, now that he has grandchildren. His spouse, Leah, is covered by her company's corporate retirement plan. She has told him that he can contribute to her plan so that they can retire sooner. Which of the following statements is TRUE?
A) Max may set up an IRA, but he will pay 50% excise taxes if he makes any withdrawals in the next 10 years.
B) Max's contributions will be tax deductible because his company has never offered a sponsored plan.
C) Max and Leah's combined income is too great to enjoy any tax-deferred growth.
D) Max cannot contribute to Leah's plan.
Ans: D) Max cannot contribute to Leah's plan.
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Good Faith Consultants partnered with QuickFind IT Solutions for a period of six months. After three months, they wanted to extend the contract by two years. According to the Statute of Frauds, which of the following is true of the contract?
A) The modification to the duration of the contract should be in writing. B) A new contract must be formed. C) The contract can be oral both before and after modification. D) Only the original contract should be in writing.
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A) $18.41. B) $17.41. C) $16.41. D) -$17.41.