Chapter exam-Retirement plans
An individual working part-time has a gross income of $5,000 for the year. if this individual has an IRA what is the maximum deduction IRA contribute allowable?
$5,000
According to ERISA regulations, a summary plan description must be provided to a new plan member within__days of the members eligibility day
90 days
A description of a qualified plans insurance contract may be found in which ERISA reporting form
Annual return/report (Form 5500)
An employee welfare plan exempt from ERISA regulations would be
Church plans
How are qualified Roth IRA distributions normally treated for tax purposes? 10% penalty tax is applied Taxed as ordinary income Capital gains tax is applied Received income tax-free
Received income tax-free
According to the IRS, a company may NOT do which of the following in regards to funds in a qualified retirement plan?
Repossess the funds for business purposes
What does a 401(k) plan generally provide its participants?
Salary-deferral option
contribution made by an employee to a qualified plan are required to be
Subject to a vesting schedule
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
The marital deduction
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
mandatory income tax withholding on the transfer amount
A Keogh plan is a(n)
qualified retirement plan for the self employed
In an individual retirement account (IRA), rollover contributions are
unlimited by dollar amount
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
What is another name e for a keogh plan?
HR 10 plan
Which of the following is true about a qualified retirement plan that is top heavy?
More than 60% of plan assets are in key employee accounts
