Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Tutoring For 65 > 4/24/2023 > Flashcards

4/24/2023 Flashcards

1
Q

IRA and Roth Max Contribution Limit

A

6,500k/yr

if older than 50:
7,500k/yr

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

When does IRA / Roth IRA withdrawl penalty go away

A

IRA:
59 1/2 years old

Roth:
59 1/2 years old
and
held account for 5+ years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How much is IRA and Roth IRA Early with drawl penalty

A

10% of what was taken out early

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How much is the IRA and Roth penalty for not pulling out RMD’s when you were supposed to

A

10% of the amount that should have been taken out

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Details on Contribution Limits on IRA and Roth if you have a company plan

A

Based on Income
79k/yr - Start’s to reduce the $ amount you can contribute every year

150k/yr - No more contributions allowed to IRA and Roth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

RMD’s must be paid each year by what day

A

1st year:
April 1st of the following year

All other years
by December 31st of that year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what determines how much do you have to pay every year in RMD’s

A

Male and Female average life expectancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Options for paying taxes on Inherited IRA and Roth IRA’s

A

If Spouse:
Lump Sum
Rollover into Your Account (must have same tax status -If IRA must still be IRA-)
10 Year Stretch

If Not a Spouse:
Lump Sum
10 Year Stretch

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

List all Company Retirement Plan Types

A

Defined Benefit Plan

Defined Contribution Plan

401k

403b

Deferred Compensation Plan

457

HSA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

List all Self Employed Retirement Plans Types

A

SEP IRA

KEOGH

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Defined Benefit Plan

A

Basically a Pension

Funded By Company

Company HAS to contribute every year whether they have the money to or not

Usually has a vesting Schedule - Longer With Company = higher the pension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Defined Contribution Plan

A

Think Profit Sharing

Funded By the Company and Employee can make contributions as well

Company Doesnt have to contribute

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

401k

A

Max Contribution Limit
27k /yr (excluding company match)

The company Can match up to
6% of employees’ annual salary

Can have a Roth Option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which company retirement plans have Roth Options

A

401k

403b

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How do Retirement Plans with Roth Options work when matching is involved

A

the match and employees funds are
Kept Seperate

Employee’s Contributions = After Tax $ => placed in a Roth 401k Account
Employers Contributions = Pre Tax $ => placed in 401k Account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

403B

A

a 401k for Government Employees
(Federal State and Local)

has Matching
has Roth Option

ALSO has TSA option

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

TSA

A

Tax Sheltered Annuity

Offered as an option for with 403b plans

taking the funds and annuitizing them into a guaranteed income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Deferred Compensation Plan

A

Employees Saying they don’t need all the money they make so they go to HR and take a % of their income each paycheck and saving it for later in a Defined Compensation Plan

Non-Qualified Plans (Post Tax Contributions)

Usually only offered to employee’s who:
-have 5 yrs to retirment
or
-Have a really high income from work
(that they dont need all of right now)

If the Employer Company Goes under So does the Deffered Comp Plan

19
Q

457

A

Deferred Compensation Plan for Government Employees

PAID IN PRE-TAX CONTRIBUTIONS (unlike private sector Deferred Comp Plans)

Not just for people 5yrs to retirement or high-wage earners. Any government employee can start one on day 1 of employment

20
Q

SEP IRA/KEOGH

A

IRA for Self-Employed Individuals and Small Businesses

No Roth Option

Has Safe Harbor:
means the % you add to your plan you also have to contribute the SAME % (not $) to employees plans

Max Contribution:
25% Annual Salary
up to 57k/yr

21
Q

HSA

A

Health Savings Account

Pre Tax Contributions
Tax Free Withdrawls (if used for Healthcare Expenses)

Set up through your Employer

Contributions DO NOT have to be spent all in the same year
(Those are FSA’s flexible spending accounts)

You tell your employer you are going to save X amount into HSA then they add that amount to the account at the beginning of the year then take % of your wage to pay themselves back throughout the year

22
Q

All Types of Education Plans

A

529 Plans

Coverdell IRA

23
Q

529 Plan

A

OWNED BY STUDENT

No Limit on contributions
BUT
Individuals are only allowed to contribute $15k/yr each
Married $30k/yr
(you can have an unlimited amount of people contributing 15k/yr)

has 5 year front end load option
(contribute 5 years worth all up front then not contribute any more for 5 years)

Contributions: AFTER TAX Dollars

Withdrawals are Tax Free
(Growth is not Taxed)

Must be used on Educational Expenses
VERY STRICT on that
Only Allows:
-Tuition
-Room and Board
-Laptop

Can Transfer Ownership to Family Members 1 Step Removed
(Cousins, Aunts, Uncles, etc…)

No Age Limit

24
Q

Coverdell ESA

A

NOT OWNED BY STUDENT
but student is beneficiary

Max Contribution
2k/yr per Student

Contributions: After-Tax Dollars

Withdrawals are Tax Free
(Growth is not Taxed)

No contributions allowed after the Student is 18 years old

Student Age 30: anything left gets charged 10% penalty per year

Must be used on Educational Expenses
NOT as strict as 529 plans

Can Transfer Ownership to Family Members 1 Step Removed
(Cousins, Aunts, Uncles, etc…)

25
Q

UTMA

A

Uniform Transfer Minor Account

Owned by Minor
But requires a custodian
(a parent or legal guardian most likely)

Anyone can contribute to the plan

TAXED LIKE A NQ BROKERAGE ACCOUNT
(after-tax contributions, taxed every year on the earnings and gains of the accout)

Becomes the Minors at age 18-21
(depends upon states legal definition of adult)

No Age you have to be to take money out

CANNOT BE SPENT ON BASIC NECESITIES
IE: Clothes Food Shelter
because that’s the parent/ Guardians job to provide those things to the minor

26
Q

To open a Trust what is needed

A

A copy of the Trust Document
(shows who the Grantor, beneficiary, etc.. are for the trust)

27
Q

Do Trusts have their own tax ID # or NOT

A

Yes they do

because they do not pass taxes on to beneficiaries but instead pay the tax before hand

28
Q

QDRO’s

A

Usually from a divorce

A document Order from a court saying how to handle assets

29
Q

An Example of a QDRO

A

Child Support

30
Q

TOD

A

Transfer on Death -

“Upon my death transfer all my assets to this person”

Giving Assets to People on Death

31
Q

POD

A

Pay on Death -

“Upon my death pay this debt and pay these estate taxes”

Paying off Loan/Debt/Taxes on Death

32
Q

If you are Selling in the market you want to

A

Sell to the Highest Bidder

33
Q

If you are Buying in the Market you want to

A

Buy From the Lowest Ask Price

34
Q

Market Order

A

Guarantees an execution
but not a price

Buy # Shares

35
Q

Limit Order

A

Guarantees a Price
but not a Execution

If CMV is above or Below this Price then
Buy # Shares

36
Q

STOP Order

A

Protects investor from being hurt if the market goes the other way

If CMV is Above/Below this Price then
Turn’s into a Market Order

37
Q

STOP Limit Order

A

Protects investor from being hurt if the market goes the other way

If CMV is Above/Below this Price then
Turn’s into a Limit Order

38
Q

When Does STOP Order Activate and Execute

A

Activates - On the First Trade that Meets STOP Criteria

Executes - On the order IMMEDIATELY AFTER the Activation order

39
Q

When Does STOP Limit Order Activate and Execute

A

Activates - On the First Trade that Meets STOP Criteria

Executes - On the First Trade -AFTER THE ACTIVATION ORDER- that meets the Limit order criteria

40
Q

Buy STOP protects against what/ Activates When

A

The Price going ABOVE a certain price

41
Q

Sell STOP protects against what / Activates When

A

The Price going BELOW a certain price

42
Q

Buy Limit Executes When

A

The Price going BELOW a certain price

43
Q

Sell Limit Executes When

A

The Price going ABOVE a certain price

Tutoring For 65 (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions