Retirement Plans

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 10 years 59 1/2 and owned account for a minimum of 5 years 70 1/2 and owned account for a minimum of 10 years 70 1/2 and owned account for a minimum of 5 years

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

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

59 1/2 and owned an account for at least 5 years.

A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences.

60

A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences. 15 30 60 90

60

Within how many days must a rollover be completed in order to avoid being taxed as current income? 30 60 90 120

60

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

A local electrical supply company with 12 employees.

Which of the following employers is required to follow ERISA regulations? A local government with 150 employees A church with 30 employees A local electrical supply company with 12 employees A Canadian company with 300 employees working in the United States

A local electricity company with 12 employees.

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

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? Key person IRA Period certain annuity Deferred compensation option Income deferral option

Deferred compensation option

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

Defined contribution plan

An example of a tax-qualified retirement plan would be a(n) equity compensation plan defined contribution plan executive index plan 1035 exchange plan

Defined contribution plan

Which of these statements concerning Traditional IRAs is CORRECT? Earnings are not taxable when withdrawn Earnings are taxable when withdrawn Contributions are never tax-deductible Contributions are always made by the employer

Earnings are taxable when withdrawn.

Which of the following is NOT a federal requirement of a qualified plan? Must benefit a broad cross-section of employees Employee must be able to make unlimited contributions Vesting schedule must be defined Employer establishes the plan

Employee must be able to make unlimited contributions

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

When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable? Principal Contributions made by employee Contributions made by employer Gains

Gains

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

Income

Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? Contains a vesting schedule Contributions are applied with no regard to income Formed for the sole benefit of employees and their beneficiaries It is temporary

It is temporary

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

It is temporary.

How are contributions made to a Roth IRA handled for tax purposes? Fully tax deductible Not tax deductible Partially tax deductible Conditionally tax deductible

Not tax deductible

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

Which of these retirement plans do NOT qualify for a federal income tax deduction? SIMPLE Plan Traditional IRA Keogh Plan Roth IRA

Roth IRA

All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT Qualified college expenses First time home purchase Death of the participant Stock purchase

Stock purchase

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

Stock purchase.

Who were Keogh plans designed to provide pension benefits for?

The self-employed

Who were Keogh plans designed to provide pension benefits for? Corporate officers Public school employees The self-employed Government employees

The self-employed

Under a Traditional IRA, interest earned is taxed

Upon distribution.

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

income