Retirement Plans

A distribution from a corporate pension plan to be rolled over into an IRA must be completed within how many days to maintain its tax-deferred status?

60 days.

SEP IRA

An employee age 50 or older is permitted to make catch-up contributions to a SEP.

Coverdell ESA

Contributions to an ESA are not tax deductible

Qualified distributions from Roth IRAs are...

Tax Free

Roth IRA

The maximum annual contribution to a Roth IRA is 100% of earned income, not to exceed a maximum allowable dollar limit Contributions are made with after-tax dollars.

A member firm's customer is requesting that IRA contributions converted from a traditional IRA to a Roth IRA now be moved back to a traditional IRA. This is

a re-characterization and is allowed by the IRS so long as certain requirements are met

Minimum distributions from a traditional IRA must begin

by April 1, the year after the owner turns 70½.

403(b)

employees of nonprofit organizations (such as hospitals and schools) may make tax-deductible contributions from their paychecks into a retirement plan operated through their employer