An Individual Is Considered an Active Participant in an Employer-Sponsored

question 29

True/False

An individual is considered an active participant in an employer-sponsored retirement plan merely because an individual's spouse is an active participant for any part of a plan year in applying the IRA phase-out provision.

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Definitions:

Land Improvements

Enhancements to a piece of land to increase its value or usability, such as landscaping, fencing, and adding utilities, which are subject to depreciation.

Useful Life

The estimated period over which an asset is expected to be used by an entity before it is replaced or becomes obsolete.

Depreciated

The decrease in the value of an asset over time due to wear and tear or obsolescence.

Modified Accelerated Cost Recovery System

A method of depreciation in the U.S. tax code that allows for faster asset depreciation in the early years of the asset's life.