Retirement plans exam
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