Retirement
first time home buyers are able to withdraw up to how much from their qualified incurring the 10% early withdraw penalty
10k
Tom has a qualified retirement plan with his employeer that is currently considered to be 80% vested, how can this be interpreted?
20% of the funds could be forfeited. "vested" mean that 20% of the funds could be forfeited if toms employment is terminated
An individual working part-time has a gross income of 5k for the year. if this individual has an IRA, what is the max deductible IRA contribution allowable?
5k; the maximum allowable ITA contribution is 5k
The time limit an individual has to "rollover" funds from an IRA or qualified plan is
60 days or the funds could be subject to income tax and penalty tax
An officer for a corp takes out numerous unsecured loans from the co. qualified reitrement plan. which of these rules id the plan in violation of?
Exclusive benefit rule. the assets held in Co retirement plan must be maintained for the exclusive benefit of employees and their beneficiaries.
A trustee transfer of rollover funds in a qualified plan allows a participant to avoid
Mandatory income tax with holding on the amount transfeered. there is no federal tax with holding involved in a transfre of funds from 1 qualified plan into another. Rollovers, invovlve a 20% withholding.once the rollover takes place to the new custodian, the remiainfer of the distribution is mafe
According to the IRS, a Co, may not do which of the following in regards to finds in qualifies retirement plans?
Repossess the funds doe a business purpose
A keogh plan is an
a qualified plan for the self employeed
A LI producers underwriting duties may include
seeking additional info requested by the insurer
in an IRA rollover contributions are ?
unlimited by dollar amount
Premature IRA distributions are subject to a penalty tax of
10%
A qualified profit-sharing plan is designed to
Distribute a portion of a company earnings to its employees
Which of the following is TRUE about a qualified retirement plan that is "Top Heavy"
more than 60% of plan assets are in key employee accounts.
Contributions made by an employee to a qualified retirement plan are required tobe?
subject to a vesting schedule
which tax would an IRA participant be subjected to on distributions recived prior to age 59.5
income and penalty tax
According to ERISA regulations, a summary plan description must be provided to a new plan member within _ days of the memeber eligibility date?
90
Which of the following situations would allow funds to be deposited inot a rollover IRA?
AN employer who resigns receives funds from a qualified plan could be deposited the available funds into a rollover individual retirement account (IRA)
which of the following statements is TRUE if the owner of an IRA names their spouse as beneficiary, buth the dies before any distributions are made??
a surviving spouses who inherits IRA from deceased spouses qualified plan is eligible to rollover IRA in their name
An employee welfare plan exempt from ERISA regulations would be
church plans
which of the following can be used to avoid the mandatory withholding tax on qualified plan distributions
conduit IRA; is a holding tank for funds that originally came from qualified plan and are on theri way to another qualified plan. no withholding tax is necessary unless any of the funds are distributed directly to the person
An employee requested that the balance of her 40lk account be sent directly to her in one lump sum. upon receipt of the distribution, she immediately had the finds rolled over into an IRA. what is the tax consequence?
distribution is subject to federal income tax withholdings. a participant complete a tolloever to another qualified plan within 60 days or the distribution is considered a non qualified distribution and is sibject to taxes and penalities, a plan sponsor must withold 205 OF THE DISTRIBUTION FOR FEDERAL TAX rollover. once the roll over takes place to the new custodian, the remainder of the distribution id released
