Retirement Plans

In a defined contribution plan, A. The benefit is known. and he contribution is unknown B. The contribution and the benefit are unknown C. The contribution and the benefit are known D. The Contribution is known and the benefit is unknown

D. The Contribution is known and the benefit is unknown

Am internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(n) A. 403(b) Plan (TSA) B. Koegh Plan C. Roth IRA D. SEP

A. 403(b) Plan (TSA)

Which of the following would be considered a nonqualified retirement plan? A. Split-dollar plan B. 401(k) C. Keogh plan D. Roth IRA

A. Split-dollar plan

For a retirement plan to be qualified, it must be designed for the benefit of A. IRS B. Employees C. Key employee D. Employer

B. Employees

Which of the following is an IRS qualified retirement program for the self-employed? A. 401(k) plan B. Keogh plan C. Split dollar D. Buy-sell agreement

B. Keogh plan

An IRA purchased by a small employer to cover employees is known as a A. 403(b) plan B. Simplified Employee Pension Plan C. 401(k) plan D. Defined contribution plan

B. Simplified Employee Pension Plan

SIMPLE Plans require all of the following EXCEPT A. No more than 100 employees B. Employees must receive a minimum of $5,000 in annual compensation C. At least 1,000 employees D. No other qualified plan can be used

C. At least 1,000 employees

What is the primary purpose of a 401(k) plan? A. To receive dividends over a certain period B. Life insurance distribution C. Retirement D. Education funds

C. Retirement

Under the 401(k) bonus or thrift plan, the employer will contribute A. All of the money to the plan B. 30% of what the employee contributes C. 75% of what the employee contributes D. An undetermined percentage for each dollar contributed by the employee

D. An undetermined percentage for each dollar contributed by the employee

If a retirement plan or annuity is "qualified", this means A. It has a penalty for early withdrawal B. It accepts after-tax contributions C. It is noncancellable D. It is approved by the IRS

D. It is approved by the IRS