Qualified Retirement Plans Chapter Quiz

Which of the following would be most likely to start a tax-sheltered annuity?

Public school teachers.

Which of the following is an example of a nonqualified retirement plan?

Section 457 deferred compensation.

In a traditional IRA plan, at what age must the plan owner begin withdrawing funds?

59 1/2.

All of the following persons who do not have an employer sponsored retirement plan would be eligible to set up contributions to a traditional IRA Except?

Arlene, age 7, a nurse.

What qualifies an individual to contribute to an IRA?

Earned income.

Which of the following is Not a requirement of a qualified plan?

It must be temporary.

Retirement plans can be broadly divided into which of the following categories?

Qualified and nonqualified.

What is the primary purpose of a 401(k) plan?

Accumulation of retirement income.

If a company has simplified employee pension (SEP) plan, what type of plan is it?

A defined contribution plan for a small business.

what is the requirement for a number of employees in a SIMPLE plan?

No more than 100.

For a retirement plan to be qualified, it must be designed for the benefit of?

Employees.

If a retirement plan or annuity is qualified?

It satisfies the requirements of the internal revenue service for favorable tax treatment.

Which of the following is an IRS qualified retirement program for the self-employeed?

Keogh/HR-10.

An employer has sponsored a qualified plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit-sharing plan.

Which of the following retirement plans is for nonprofit, charitable, educational or religious organizations?

Tax-sheltered Annuity 403(b).