Retirement plans exam
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?
$2,500
Premature IRA distributions are assessed a penalty tax of
10%
Which of the following is TRUE about a qualified retirement that is "top heavy"?
More than 60% of the plan assets are in key employee accounts)
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the:
marital deduction
Traditional individual retirement annuity distributions must start by:
April 1st of the year following the year the participant attains age 70 1/2
What does a 401(k) plan generally provide its participants?
Salary-deferral contributions
I'm an individual retirement account (IRA), rollover contributions are:
Not limited by dollar amount
What type of employee welfare plans are not subject to ERISA regulations?
Church plans
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
20% is withheld for income taxes
How long does an individual have to "rollover" funds from an IRA or qualified plan?
60 days
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If Tom's employment is terminated, 20% of the funds would be forfeited
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 a 10% penalty tax on $30,000
Which plan is intended to be used by a sole proprietor and the employees of that business?
Keogh Plan