Chapter 9 exam quizlet

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

60 days

Traditional individual annuity (IRA) distributions must start by

April 1st of the year following the year the participant attains age 70 1/2

In a qualified retirement plan, the yearly contributions to an employees accounf

Are restricted to maximum levels set by the IRS

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

Church plans

Which of these retirement plans can be started by an employee, even if another plan is in existence?

Individual Retirement Account (IRA)

Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2?

Ordinary income tax and a 10% tax penalty for early withdrawal

Post-tax dollar contributions are found in

Roth IRA investments

A qualified profit-sharing plan is designed to

allow employees to participate in the profits of the company

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

employee

A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid

mandatory income tax withholding on the transfer amount