Social Security & Retirement Plans
Premature IRA distribution are assisted a penalty tax of
10%
All of the following statements about traditional individual retirement accounts are false except
10% penalty is applied to withdrawals before age 59 ½
What is the maximum number of employees that an employer can have in order to start a simple retirement plan
100
An individual participant personally received the legible roller funds for a profit sharing plan. What is the income tax withholding requirements for this transaction
20% is withheld for income tax
Employee requested that the balance of her 401(k) be directly sent to her and one lump sum. Upon receipt of the distribution she immediately has funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee
Distribution is subject to federal income tax withholding
Any individual retirement account rollover contributions are
Not limited by dollar amount
What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive
Primary insurance amount
A retirement plan that sets aside part of the companies net income for distribution to qualify employees is called a
Profit sharing plan
What does a 401(k) plan generally provide its participants
Salary deferral contributions
What is old age and survivors health insurance also known as
Social Security
Which of the following is true if the owner of an IRA names their spouse and beneficiary but then dies before any distributions are made
The account can be rolled into the surviving spouse's IRA
One becomes eligible for Social Security disability benefits after having been disabled for
5 months
An individual working part time has an annual income of $25000. If the individual has an IRA what is the maximum deductible IRA contribution allowed
6000
Qualified profit sharing plan is designed to
Allow employees to participate in the profits of the company
The amount of monthly disability benefits payable under Social Security is affected by which of the following factors
Amount of the benefits available from other sources
What type of employee were fair plans are not subject to ERISA regulations
Church plans
Which of the following does Social Security not provide benefits for
Dismemberment
An employer that offers a qualified retirement plants his employees is a legible to
Make tax deductible contributions to the plan
Which tax would an IRA participant be subjected to on distributions received prior to age 59 ½
Ordinary income tax any 10% tax penalty for early withdrawal
All of these are considered to be a benefit under Social Security except for
Unemployment
Which of these is not a source of funding for Social Security benefits
Federal government
Post tax dollar contributions are found in
Roth IRA investments
Who is normally considered to be the owner of a war three tax-sheltered annuity
The employee
When funds are shifted straight from one IRA to another IRA what percentage of taxes withheld
None
Q is severely injured in an automobile accident and becomes totally disabled how many months Q be disabled before being able to file for Social Security disability benefits
5 months
What is the excise tax rate the IRS imposed and individuals Age70 1/2 or older rheumatic the required minimum distribution from your qualified retirement plan
50%
An IRA owner starts making withdrawals and not be subjected to a tax penalty beginning at what age
59 ½
How long does an individual how to rollover funds from an IRA or qualified plan
60 days
Which product would best serve a retired individual lookington vest a lump sum money during insurance company
Annuity
To be eligible for Social Security disability benefit and employee must be unable to perform
Any occupation
Traditional individual retirement annuity distributions must start by
April 1 of the year following the year the participant attained age 70 ½
In a qualified retirement plan the yearly contributions to an employees account
Are restricted some maximum levels set by the IRS
How are Roth Ira distribution normally taxed
Distributions are received tax-free
Tom has 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 will be forfeited
At age of 45 an individual withdraws 50,000 from his qualified profit sharing plan and then deposits this amount as a personal savings account. This action will result in
Income tax in a 10% penalty assessed upon funds withdrawing from the qualified plan
A 55 year old recently received a 30000 distribution from a previous employers 401(k) plan -$6000 holding which federal taxes apply if none of the funds were rolled over
Income taxes plus at 10% penalty tax on 30000
Which of these retirement plan can be started by an employee even if another plan is an existent
Individual retirement account IRA
I sole Proprietor may use this plan only if the employees of this business are included
Keogh Pension plan
Rick recently died and left behind an individual IRE account and his name. His widow was forwarded the balance of the IRA. The widow qualifies for The
Marital deduction
Which of the following is true about a qualified retirement that is top heavy
More than 60% of plan assets are in key employee accounts
A trustee to trustee transfer of rollover fun in a qualified plan allows a participant to avoid
mandatory income tax withholding of the transfer amount
