Chapter 10: retirement plans

Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?

employee

How long does an individual have to rollover funds from an ira or qualified plan?

60 days

Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company?

annuity

An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirement for this transaction?

20% is withheld for income taxes

Post-tax dollars contributions are found in

Roth IRA investments

What does a 401k plan generally provide its participants?

Salary-deferral contributions

What type of employee welfare plans are not subject to ERISA regulations?

Church plans

Rick recently died and left behind an individual IRA account in his name. His widow has forwarded the balance of the IRA. The widow qualifies for the: what?

Marital deduction, which generally exempts the transfer from the estate taxes

In an individual retirement account ( ira) rollover contributions are

not limited by dollar amount

In an individual retirement account (IRA), rollover contributions are:

not limited by dollar amount

At 45 and individual with drawls 50,000 from qualified pre-sharing plan and then deposit this amount into a personal savings account is action would result in

Income tax and 10% penalty assessed upon funds withdrawn from the qualified plan

In a qualified retirement plan, the yearly contribution to an employee's account

Are restricted to maximum levels set by the IRS

A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a: what?

Profit-sharing plan

All of the following statements about traditional individual retirement accounts are false except

10% penalty is applied to withdrawals before age 59 1/2

What is true about a retirement that is top heavy?

A plan is considered to be top heavy if More then 60% of plan assets are key employee accounts

A 55 year old received a 30,000 distribution from a previous employer's 401k plan, minus 6,000 withholding. Which federal taxes apply if none of the funds were rolled over?

Income taxes plus a 10% penalty tax on $30,000,

Which of the following is true if the owner of an (Ira) names their spouse as beneficiary, but dies before any distributions are made?

The account can be rolled over into the surviving spouses's IRA