#9 retirement plans
Premature IRA distributions are assessed a penalty tax of
10%
what is the maximum number of employees (earning at least $5000) that an employer can have in order to start a simple retirement plan?
100
Post-tax dollar contributions are found in
Roth IRA investments
A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a:
profit-sharing plan
What type of employee welfare plans are not subject to ERISA regulations?
Church plans
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?
50%
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?
59 1/2
At the age of 45, an individual withdraws $50,000 from his Qualified Profit-Sharing Plan and then deposits this amount into a personal savings account. This action would result in:
Income tax and a 10% penalty assessed upon funds withdrawn from the Qualified Plan
Which of the following is true about a qualified retirement that is "top heavy"?
More than 60% of plan assets are in key employee accounts
What does a 401(k) plan generally provide its participants?
Salary-deferral contributions