Retirement plans exam

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An individual working part time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?

$2,500

Premature IRA distributions are assessed a penalty tax of

10%

Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the:

marital deduction

What type of employee welfare plans are not subject to ERISA regulations?

Church plans

An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?

20% is withheld for income taxes

How long does an individual have to "rollover" funds from an IRA or qualified plan?

60 days

Traditional individual retirement annuity distributions must start by:

April 1st of the year following the year the participant attains age 70 1/2

Tom has a 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 would be forfeited

What does a 401(k) plan generally provide its participants?

Salary-deferral contributions

A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?

Income taxes plus a 10% penalty tax on $30,000

Which plan is intended to be used by a sole proprietor and the employees of that business?

Keogh Plan

Which of the following is TRUE about a qualified retirement that is "top heavy"?

More than 60% of the plan assets are in key employee accounts)

I'm an individual retirement account (IRA), rollover contributions are:

Not limited by dollar amount


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