Qualified Plans quiz study set
Which type of retirement account does not require the owner to start taking distributions at age 72?
Roth IRA
WHich of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT?
SEPs are suitable for large companies
If a company has a Simplified Employee Pension plan, what type of plan is it?
a qualified plan for a small business
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT
at distribution, all amounts received by the employee are tax free
A tax-sheltered annuity is a special tax-favored retirement plan available to
certain groups of employees only
all of the following are true regarding tax-qualified annuities EXCEPT
employer contributions are not tax deductible
Which of the following is true of a qualified plan?
it has a tax benefit for both employer and employee
All of the following types of distributions are considered exceptions to the early distribution rule and, therefore, are not subject to the penalty tax EXCEPT
participant's debt
All of the following would be different between qualified and nonqualified retirement plans EXCEPT
taxation on accumulation
How are contributions to a tax-sheltered annuity treated with regards to taxation?
they are not included as income for the employee, but are taxable upon distribution
Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings?
they are tax deferred until withdrawn