CH. 10: Retirement Plans (CH. Exam)
60
A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences. 15 30 60 90
Stock purchase
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
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
Qualified retirement annuity
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 Key employee retirement annuity Executive compensation plan Keogh annuity plan
59 1/2
Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions without a tax penalty? 55 59 1/2 62 70 1/2
Not tax deductible
How are contributions made to a Roth IRA handled for tax purposes? Fully tax deductible Not tax deductible Partially tax deductible Conditionally tax deductible
Income
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any money withdrawn. Estate Probate No Income
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
Upon distribution
Under a Traditional IRA, interest earned is taxed Only if withdrawn prior to age 59 1/2 According to the capital gains rate Upon distribution During the accumulation phase
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
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
Roth IRA
Which of these retirement plans do NOT qualify for a federal income tax deduction? SIMPLE Plan Traditional IRA Keogh Plan Roth IRA
Earnings are taxable when withdrawn
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
The self-employed
Who were Keogh plans designed to provide pension benefits for? Corporate officers Public school employees The self-employed Government employees
60
Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences? 30 45 60 90