Insurance - Retirement Plans

Which of the following employers is required to follow ERISA regulations?

a local electrical supply company with 12 employees

An example of a tax-qualified retirement plan would be a(n)

defined contribution plan

Which of these statements concerning Traditional IRAs is CORRECT?

earnings are taxable when withdrawn

Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any money withdrawn.

estate

Under a Traditional IRA, interest earned is taxed

upon distribution

Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions without a tax penalty?

59 1/2

A Roth IRA owner must be at least what age in order to make tax-free withdrawals?

59 1/2 and owned account for a minimum of 5 years

Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment?

It is temporary

Rob has a benefit at work which enables him to defer his current receipt of income and have it paid at a later date, when he will probably be in a lower tax bracket. Which benefit fits this description?

Deferred compensation option

How are contributions made to a Roth IRA handled for tax purposes?

Not tax deductible

Which of these retirement plans do NOT qualify for a federal income tax deduction?

Roth IRA

Who were Keogh plans designed to provide pension benefits for?

The self-employed

Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences?

60

Within how many days must a rollover be completed in order to avoid being taxed as current income?

60

All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT

Stock purchase

Which of the following is NOT a federal requirement of a qualified plan?

Employee must be able to make unlimited contributions

When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable?

Gains

Dana is an employee who deposits a percentage of her income into her individual annuity. Her company also contributes a percentage into a separate company pension plan. What kind of annuity is this considered?

Qualified retirement annuity