Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
James Blaine is the sole shareholder and president of Blaine Foods, Inc. which operates a successful fast-food franchise. Ã¢â‚¬Â¢ Mr. Blaine owns the building and land from which the franchise is operated, but the corporation owns the franchise and leases the building and land from Mr. Blaine. Ã¢â‚¬Â¢ Mr. Blaine is paid a salary of $150,000 a year. He also earns $50,000 per year in interest, dividends, and capital gains on his investment account. Ã¢â‚¬Â¢ Mr. Blaine, age 50, is married and has three children nearing college age. Ã¢â‚¬Â¢ He currently has no qualified plan in place at Blaine Foods and would like your help in developing one for 2019 (assume that it is currently September 20, 2019). Ã¢â‚¬Â¢ The corporation averages a cash flow of $35,000 to $55,000 per year after the ownerÃ¢â‚¬â„¢s compensation. Ã¢â‚¬Â¢ The restaurant is managed by one general manager and two assistant managers who have worked for James Blaine for at least five years. Ã¢â‚¬Â¢ The general manger is paid $65,000 per year, and the two assistants average $45,000 annually (all the managers are between 28 and 34 years old). Ã¢â‚¬Â¢ The rest of BlaineÃ¢â‚¬â„¢s employees can be divided into two groups. Group A (ten employees) are short-term, part-time high school students who will make between $650 and $6,000 during 2018. Group B (12 employees) are over 21 and will earn more than $6,000 in 2018. The total compensation for these two groups for 2018 will be $35,000 and $171,000, respectively. Ã¢â‚¬Â¢ James Blaine would like to increase his savings for retirement beyond his regular IRA contributions. He wants to maximize his tax-deductible contributions, without incurring large expense for his regular employees, who are likely to remain with the company for only a short time.
James Blaine has asked you the following questions:
1. If in 2019 a qualified profit-sharing plan is established at Blaine Foods, Inc. what is the maximum contribution that could be made on the behalf of James Blaine?
2. If in 2019 Mr. Blaine established a SIMPLE IRA plan what is the maximum contribution that could be made on the behalf of James Blaine?
3.For James Blaine, what is the primary advantage of establishing a defined-benefit plan at Blaine Foods?
4. Which of the following retirement vehicles are not options for Mr. Blaine or Blaine Foods: a. Roth IRA b. Defined-benefit pension plan c. SIMPLE IRA d. 401(k) plan
5. What type of retirement plan would you recommend?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more