Retirement Plans and Social Security

Who may contribute to an HR-10 plan?

self-employed plumber

An IRA immediate annuities to pay out benefits, the IRA owner is nearly 75 years old when he decides to collect distributions. What kind of penalty would the IRA owner pay?

50% tax on the amount not distributed as required

Which of the following is true of a qualified plan?

It has a tax benefit for both employer and employee.

All of the following are general requirements of a qualified plan EXCEPT

The plan must provide an offset for social security benefits.

In terms of Social Security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called?

blackout period

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?

income tax on distributions and no penalty

Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT?

SEPs are suitable for large companies

All of the following benefits are available under Social Security EXCEPT

Welfare benefits

Social Security was created to protect against all of the following EXCEPT

Bad investment choices

All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT

Being age 65

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

Taxation on accumulation

For a retirement plan to be qualified, it must be designed for whose benefit?

employees