quiz9

In a qualified retirement plan, the yearly contributions to an employee's account:

are restricted to maximum levels set by the IRS

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

Salary-deferral contributions

An employer that offers a qualified retirement plan to its employees is eligible to:

make tax-deductible contributions to the plan

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

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?

$25,000

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

60 days

Which of these retirement plans can be started by an employee, even if another plan is in existence?

Individual Retirement Account (IRA)

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

Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2?

Ordinary income tax and a 10% tax penalty for early withdrawal

In an individual retirement account (IRA), rollover contributions are:

not limited by dollar amount