Unit 13 Life Ins Book
Herbert and Olga, both age 48, have been married for 10 years. They have no children, and each has a well paying job. However, neither is covered by an employer retirement plan. What is the maximum amount they may set aside together in tax-deductible, traditional IRA funds in 2017?
$11,000
Bob, age 43, owns a traditional IRA and a Roth IRA. What is the maximum amount that he can contribute to both accounts in 2017 without being penalized?
$5,500
All of the following types of plans are reserved for small employers EXCEPT
401 (k)s
A distribution received from an employer-sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it is reinvested in an IRA within how many days after the distribution?
60
All of the following should be eligible to establish a Keogh retirement plan EXCEPT
A major stockholder-employee in a family corporation
All of the following statements about SIMPLE plans are correct EXCEPT
An employer must take a nonelective contribution of 2% of compensation on behalf of each eligible employee
Which of the following statements correctly describes the tax advantage of a qualified retirement plan?
Earnings of the plan are taxable to the employee only when the employee receives benefits
All of the following employed persons who have no employer-sponsored retirement plan would be eligible to set up and contribute to a traditional IRA EXCEPT
Edna, age 72 nurse
Which of the following scenarios pertaining to IRAs is NOT correct?
Peter inherits $15,000 in IRA benefits from his father, who died in 2008. Peter can set up a tax-favored rollover IRA with the money and defer current income tax on the benefits received.
Which of the following phrases best describes vesting?
The employee's right to funds or benefits, contributed by the employer, should the employee leave that employer
Which of the following statements about 401(k) plans is CORRECT?
There is a limit on employee deferrals
All of the following statements regarding Roth IRAs are true EXCEPT
They mandate distributions no later than age 70 1/2
If David sets up a traditional IRA, what is the maximum contribution he can make and deduct from adjusted gross income for 2017
$5,500
