Insurance ch 10 (Tax, retirement)

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

Not limited by dollar amount

Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2

Ordinary income tax and a 10% tax penalty for early withdrawal

First-time homebuyers are able to withdraw up to how much from their qualified IRA's without incurring the 10% early withdrawal

$10,000

How long does an individual have "rollover" funds from an IRA or qualified plan

60 days

A qualified profit-sharing plan is designed to

Allow employees to participate in the profits of the company

How are Roth IRA distributions normally taxed

Distributions are received tax-free

A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?

Income taxes plus a10% penalty tax on 30,000

An employer that offers a qualified retirement plan to its employees is eligible to

Make tax-deductible contributions to the plan

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

Marital deduction

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

Which of the following is true is the owner of an IRA names their spouses as beneficiary, but then dies before distributions are made

The account can be rolled into the surviving spouses IRA

Premature IRA distributions are assessed a penalty tax of

10%

An individual working part-time has an annual income of 25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable

25,000

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%

Traditional individual retirement annuity(IRA) distributions must start by

April 1st of the year following the year the participant attains age 70 1/2

In a qualified retirement plan, the yearly contributions to an employee's account

Are restricted to maximum levels set by the irs

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

Profit-sharing plan