Retirement
A Keogh plan is a tax-deferred retirement savings plan for:
both A and B
All of the following statements are true about the tax advantages of a qualified retirement plan except:
employees'' contributions to retirement plans are included in ordinary income.
The advantages of qualified retirement plans to employers include all of the following EXCEPT:
reward a few employees rather than many.
All of the following statements pertaining to SIMPLE plans are correct except:
these plans are reserved for employers with 1000 or more employees.
Sara purchased an IRA in 1979, and over the years has paid a total of $70,000 into the contract, of which $20,000 was non-deductible after-tax contributions. Now age 65, Sarah is retiring and plans to begin receiving systematic distributions from the IRA over her 20-year life expectancy. She expects to receive $600 per month under this distribution plan. Of the $7,200 she will receive annually from this annuity, how much will represent tax-free income?
$1,000
Premature distribution from a qualified retirement plan or traditional IRA can be taxed as income and subject to an IRS penalty of:
10%
Which of the following best describes the concept of vesting, with respect to qualified retirement plans?
An employee''s right to funds or benefits contributed by an employer
Which of the following statements pertaining to a qualified corporate retirement plan is not correct?
Benjamin participates in his company''s qualified retirement plan, which will provide a benefit of 2% of his salary for each year he participates in the plan. This is an example of a defined contribution plan.
All of the following statements concerning qualified retirement plans are correct except
employer contributions to a qualified plan on behalf of its employees are taxable income to the employees when they are made
Which entity approves an employer sponsored qualified retirement plan?
The Federal Government
Which of the following statements about a Roth IRA is correct?
Contributions are not tax deductible
All of the following statements pertaining to traditional IRAs are correct except:
Tim inherits $45,000 in a traditional IRA from his father, who died in 2007. Tim is allowed to set up a tax-favored rollover traditional IRA his inheritance.
