Exp22_Word_Ch04_CumulativeAssessment_Retirement
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bahi_Exp22_Word_Ch04_CumulativeAssessment_Retirement.zipExp22_Word_Ch04_CumulativeAssessment_Retirement_Instructions.docx
Grader - Instructions Word 2022 Project
Exp22_Word_Ch04_CumulativeAssessment_Retirement
Project Description:
You are enrolled in a personal finance course at a local university. One of the assignments is to write a group paper with another student about the different types of retirement plans. You and your partner conducted research on the topic and wrote a final draft of the report. In this project, you will format the paper to enhance readability. You will use track changes, accepting and rejecting them as necessary, credit sources used in the preparation of the report, address your partner’s comments, and include a table of contents and an index.
Steps to Perform:
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Step |
Instructions |
Points Possible |
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1 |
Start Word. Download and open the file named Exp22_Word_Ch04_CumulativeAssessment_Retirement.docx. Grader has automatically added your last name to the beginning of the filename. |
0 |
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2 |
Ensure that the markup view is All Markup. On the second page, reject the deletion of the word NOW. Change the view to No Markup and ensure that the word is not duplicated, removing any additional text as necessary so that only the word NOW is shown at the end of the sentence. |
2 |
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3 |
Accept all other tracked changes in the document and stop tracking. Keep all comments. |
7 |
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4 |
Change the view to Simple Markup and ensure that document comments are shown. Change all headings as indicated by comments in the document. |
12 |
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5 |
Reply to the first comment by typing Done (do not include a period). Mark the first two comments, related to heading styles, as resolved. |
9 |
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6 |
Change the writing style to APA Sixth Edition. Apply the following formatting to all pages of the document, except the cover page. Document is double-spaced (with the exception of the included tables). The first line of every paragraph includes a first-line indent of 0.5” (with the exception of heading lines, the included tables, and bulleted lines). No paragraph spacing is included. |
8 |
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7 |
Click or position the insertion point before the period at the end of the first sentence of the 403(b) Plans section on page 6. The sentence ends in (TSA) plan. Insert the following Web site citation, clicking or selecting Show All Bibliography Fields, if necessary, to ensure access to all open areas: Name of Web Page: Choosing a Retirement Plan: 403(b) Tax-Sheltered Annuity Plan Name of Web Site: IRS Year: 2023 Month: October Day: 08 URL: http://www.revenue.net/RetirementPlans/403(b) |
8 |
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8 |
Click or position the insertion point before the period ending the first sentence of the 401(k) Plans section. The sentence ends with individual retirement accounts. Insert the following Web site citation: Name of Web Page: 401(k) Plan Name of Web Site: IRS Year: 2022 Month: October Day: 14 URL: http://www.revenue.net/RetirementPlans/401(k) |
8 |
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9 |
Edit the Traditional and Roth IRAs source shown after the second table in the document, changing the Year to 2023. |
5 |
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10 |
Create a blank page at the end of the report and insert a bibliography with the title Works Cited. Edit the 401(k) source (shown in the 401(k) section of the report), changing the Day to 15. Choose to update both the master list and current document. Update the bibliography to reflect the change. |
8 |
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11 |
Format the bibliography at double spacing with no paragraph spacing before or after. All text in the bibliography, including the Works Cited title, should be 12 pt Times New Roman. The Works Cited title should be centered and shown with each word capitalized (not in all uppercase). If necessary, click or display the Home tab, click or select Change Case in the Font group, and select Capitalize Each Word to change the title. Ensure that no text is bold. |
10 |
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12 |
Insert a blank page after the cover page. Create a table of contents, with an Automatic Table 1 style, on the new page. Note: Mac users, create a Classic style table of contents. |
8 |
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13 |
Insert a page break before the second table, so that the entire table is shown on one page. |
3 |
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14 |
Mark the following words as index entries, selecting Mark All for each: contribution, Roth IRA, Traditional IRA, 403(b), and 401(k). Select the first occurrence of deduction and set a cross-reference as See contribution. |
8 |
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15 |
Add an index on a blank page at the end of the document, ensuring that the format is From template. Accept all default settings. |
4 |
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16 |
Save and close Exp22_Word_Ch04_CumulativeAssessment_Retirement.docx. Exit Word. Submit the file as directed. |
0 |
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Total Points |
100 |
Created On: 04/25/2022 1 Exp22_Word_Ch04_CumulativeAssessment - Retirement 1.1
bahi_Exp22_Word_Ch04_CumulativeAssessment_Retirement.docx
Introduction Comment by Exploring Series: This is listed as a Heading 2, but it should be Heading 1. Please change this heading to a Heading 1 style.
It is never too early to save for your retirement. For a start, you can estimate the amount that you need to have before you can retire comfortably, using financial calculators found on sites such as CNN Money, Kiplinger, Motley Fool, and TIAA-CREF financial services. The good news is, there are many different types of retirement plans in which you can participate, individually or with your employers, so you are sure to find one that suits your needs.
But why should you enroll in a retirement plan NOWnow? Did you know that your retirement can last for 30 years or more? A common rule to follow is that a retiree will need up to 80% of his/her annual income today to retire comfortably. Unfortunately, the average benefit amount paid monthly by the Social Security Administration is only $1,177, which may not be enough for comfortable retirement living.
Listed below are several advantages to planning for retirement savings:
· Tax on employee and employer contributions is deferred until distributed.
· Investment gains in the plan are not taxed until distributed.
· Retirement assets can be carried from one employer to another.
· Contributions can be made easily through payroll deduction.
· Saver’s Credit is available.
· Flexible plan options are available.
· Better financial security at retirement.
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Future Retirement Savings Value - Assuming 6% annual return |
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A contribution is defined as the amount that an employee and an employer can put into a retirement plan. There are, however, varying limits on how much we (including both employers and employees) can contribute to any retirement plan. Each plan has its own rules and criteria, related to limits for contributions or benefits. Employees can choose to participate in contributions via salary reduction, with employers matching employee contributions or assigning outright a certain amount into a retirement account at set intervals.
Traditional Individual Retirement Arrangements (IRAs) Comment by Exploring Series: Please change all headings formatted with Heading 3 to Heading 2 style.
There are two major kinds of IRAs—traditional and Roth. A traditional IRA is a way to save for retirement that provides certain tax advantages. It simplifies tax-deferred investments to provide financial security upon retirement. Traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse are covered by a retirement plan at work and your income exceeds certain levela certain levels. You can contribute a maximum of $5,500 ($6,500 if you are age 50 or older) every year to an IRA.
Roth Individual Retirement Arrangements (Roth IRAs)
A Roth IRA is similar to a traditional IRA in many ways, being subjected to many of the same rules. However, a major disadvantage of a Roth IRA is that you cannot deduct contributions to a Roth IRA on your tax return. On the other hand, your distribution, which includes both your contribution and earnings, is not subject to taxes when you withdraw investments later.
Listed below are several rules and regulations that apply to a Roth IRA:
· If you satisfy the requirements, qualified distributions are tax-free.
· You can make contributions to a Roth IRA after you reach age 70 ½.
· You can leave funds in a Roth IRA as long as you live.
· The account or annuity must be designated as a Roth IRA when it is set up.
· The same combined contribution limit applies to all Roth and traditional IRAs.
· Limits on Roth IRA contributions are based on modified AGI.
· Roth IRA contributions might be limited based on your filing status and income.
Comparisons between a Traditional and a Roth IRA
Choosing between a traditional and Roth IRA is a personal decision that is based on various factors such as your age, income, and retirement goals. Similarities and differences between the two are outlined in the following table.
Source: (Traditional and Roth IRAs)
401(k) Plans
A 401(k) is a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual retirement accounts. This qualified plan can be a profit-sharing, stock bonus, pre-ERISA money purchase pension, or a rural cooperative plan. With a 401(k) plan, employees can choose to defer some of their salary to a retirement account. In other words, instead of receiving that amount in a paycheck, the employee chooses to defer, or delay, receiving income by contributing to a sponsored 401(k) plan. The deferred wages (elective deferrals) are not subject to federal income tax withholding at the time of deferral, and they are not reflected as taxable income on an employee’s individual income tax return. However, this deferred money and its earnings will be taxed when it is distributed later on.
You can make a 401(k) plan as simple or as complex as you like. A 401(k) plan that is pre-approved by the IRS might be just the thing to cut down on administrative headaches and expenses.
Advantages and disadvantages of a 401(k) plan include the following:
· Greater flexibility in contributions.
· Employees may contribute more to this plan than under IRA plans.
· Good plan if cash flow is an issue.
· Optional participant loans and hardship withdrawals add flexibility for employees.
· Administrative costs may be higher than under more basic arrangements.
· Additional withdrawal and loan flexibility adds administrative burden for the employer.
403(b) Plans
A 403(b) is a tax-sheltered annuity (TSA) plan. It is a retirement plan offered by public schools and certain 501(c)(3) tax-exempt organizations. This plan is quite similar to a 401(k) plan which is maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan allows employees to defer some of their salary into individual accounts. The deferred salary is generally not subject to federal or state income tax until it is distributed. However, a 403(b) plan may also offer designated Roth accounts. Salary contributed to a Roth account is taxed currently, but is tax-free (including earnings) when distributed. Employees save for retirement by contributing to individual accounts, and employers can also contribute to employee accounts.
Advantages of a 403(b) plan include the following:
· Flexibility in contributions.
· Investment options are limited to those chosen by the employer.
· May have high administrative costs.
· Optional loans and hardship distributions add flexibility for employees.
Who Can Participate in a 403(b) Plan? Comment by Exploring Series: Please change this heading to a Heading 3 style.
The following employees are eligible to participate in a 403(b) plan:
· Employees of tax-exempt organizations established under 501(c)(3).
· Employees of public school systems who are involved in the day-to-day operations of a school.
· Employees of cooperative hospital service organizations.
· Employees of public school systems organized by Indian tribal governments.
· Certain ministers if they are:
· Ministers employed by 501(c)(3) organizations.
· Self-employed ministers. A self-employed minister is treated as employed by a tax-exempt organization that is a qualified employer.
· Ministers (chaplains) who meet both of the following requirements.
· They are employed by organizations that are not 501(c)(3) organizations.
· They function as ministers in their day-to-day professional responsibilities.
Conclusion
This paper summarizes various types of retirement plans. As each plan has its own set of advantages and disadvantages, you should carefully consider which might be best for your situation.
