#9 retirement plans

Premature IRA distributions are assessed a penalty tax of

10%

what is the maximum number of employees (earning at least $5000) that an employer can have in order to start a simple retirement plan?

100

Post-tax dollar contributions are found in

Roth IRA investments

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

profit-sharing plan

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

Church plans

What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?

50%

An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?

59 1/2

At the age of 45, an individual withdraws $50,000 from his Qualified Profit-Sharing Plan and then deposits this amount into a personal savings account. This action would result in:

Income tax and a 10% penalty assessed upon funds withdrawn from the Qualified Plan

Which of the following is true about a qualified retirement that is "top heavy"?

More than 60% of plan assets are in key employee accounts

What does a 401(k) plan generally provide its participants?

Salary-deferral contributions