Qualified Plans
Who would qualify for a single (K) plan?
An owner only business
Simple plans do not require what?
At least 1,000 employees
What is not true of a non-qualified retirement plan?
It needs IRS approval
What applicant would not qualify for a keogh plan?
Someone who works 400 hours per year (Needs to have at least worked 1,000 hours per year)
What is the same with qualified and non-qualified retirement plans?
Taxation on accumulation
What is not a general requirement of a qualified plan?
The plan must provide an offset for social security benefits
A tax sheltered annuity is a special tax favored retirement plan available to:
Certain groups of employees onle
2 law attorneys operate a partnership. They want benefits for themselves and employees retirement. What should they choose?
HR-10 (Keogh Plan)
If a retirement plan or annuity is "qualified", this means:
It is approved by the IRS
What is true regarding a safe harbor 402(K) plan?
Contributions may be granted on behalf of all eligible employees
An employer has sponsored a qualified retirement plan for employees, where the employer will put money wherever a profit is made. What is this called?
Profit sharing plan
What type of retirement account allows contributions to continue beyond 70&1/2 years old and doesn't force distributions at age 70&1/2?
Roth IRA
An IRA purchased by a small employer to cover employees is called:
Simplified employee pension plan
What is true of a qualified plan?
it has a tax benefit for employee and employer
What is not true of tax-qualified annuities?
Employee contributions are not tax deductible
What is the primary purpose of a 401 (K)?
Retirement
What is not correct about a simplified employee pension plan (SEP)?`
SEPs are not suitable for large companies
Employer contributions made to a qualified plan are:
Subject to vesting requirements
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as income for the employee, but they are taxable upon distribution
What is not a characteristic of a single (K) plan?
Unlimited contributions
Under simple plans, employees may defer up to a specified amount each year, and the employer matches what percent of the employees annual compensation?
3%
All of the following may use a 403(B) plan for their retirement, EXCEPT:
The CEO of a private corporation
For a retirement plan to be qualified it must be designed to benefit who?
The employee
Who is not eligible for a keogh retirement plan?
The president and employee of a family corporation
What is an IRS qualified retirement program for the self employed?
Keogh Plan
Who may contribute to an HR-10 plan?
A self employed plumber
Under the 401 (K) bonus or thrift plan, the employee will contribute what?
An undetermined percentage for each dollar contributed by employee
An employee must be notified at least how many days before the start of a state harbor 401 (K) plan year?
30 Days
An internal revenue code provision that specifically provides for an individual retirement plan for public school teachers is called:
402 (B) Plan (TSA)
