Chapter exam-Retirement plans

An individual working part-time has a gross income of $5,000 for the year. if this individual has an IRA what is the maximum deduction IRA contribute allowable?

$5,000

According to ERISA regulations, a summary plan description must be provided to a new plan member within__days of the members eligibility day

90 days

A description of a qualified plans insurance contract may be found in which ERISA reporting form

Annual return/report (Form 5500)

An employee welfare plan exempt from ERISA regulations would be

Church plans

How are qualified Roth IRA distributions normally treated for tax purposes? 10% penalty tax is applied Taxed as ordinary income Capital gains tax is applied Received income tax-free

Received income tax-free

According to the IRS, a company may NOT do which of the following in regards to funds in a qualified retirement plan?

Repossess the funds for business purposes

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

Salary-deferral option

contribution made by an employee to a qualified plan are required to be

Subject to a vesting schedule

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

The marital deduction

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

A Keogh plan is a(n)

qualified retirement plan for the self employed

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

unlimited by dollar amount

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

20% is withheld for income taxes

What is another name e for a keogh plan?

HR 10 plan

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

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