Chapter exam retirement plans
Which of these is true if the owner of an IRA named their spouse as beneficiary but then dies before any disbursements are made.
The account can be rolled into the surviving spouses IRA
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If Tom's employment is terminated, 20% of the funds would be forfeited
A qualified profit-sharing plan is designed to
allow employees to participate in the profits of the company
Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company?
annuity
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?
employee
Post-tax dollar contributions are found in
Roth IRA investments
What does a 401(k) plan generally provide its participants?
Salary-deferral contributions
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
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
marital deduction
How are Roth IRA distributions normally taxed?
Distributions are received tax-free
Premature IRA distributions are assessed a penalty tax of
10%
In individual participant personally received eligible roll over funds from the profit sharing plan what is the income tax withholding requirements for this transaction
20% is the withheld for income taxes
What is the excise tax rate the IRS and poses on individuals eight 70 1/2 or older could you not take the required minimum distribution's from there qualified retirement plan
50%
And I already owner can make with drawls and not be subjected to a tax penalty beginning at what age
59 1/2
How long does an individual have to rollover funds from an IRA or qualified plan
60 days
Traditional individual retirement annuity distributions must start by
April 1st of the year the participant attains age 70 1/2
And employee requested that the balance of her 401(k) account be sent directly to her in one lump sum upon receipt of the distribution she immediately has the funds rolled over into an IRA what is the tax consequence of the distribution sent to this employee
Distribution is subject to federal income tax withholding
A 55-year-old recently received a $30,000 distribution from previous employers for a 1K plan -$6000 withholding which federal tax supply of none of the funds were rolled over
Income taxes plus a 10% penalty tax on $30,000
When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld?
none
In an individual retirement account (IRA), rollover contributions are
not limited by dollar amount