Ayuda

Question 1

Which would not qualify for a keogh plan

One over 25
One who works for self employed
One who works 400 hours per year

Answer 1

400 hours per year

Question 2

Quits w/ 10000 in qualified plan
Decides to do direct transfer from plan to traditional ira
How much will be transferred from one plan admin to another and what is tax cons of a direct transfer

10000 tax on growth
10000 no tax consequence
8000 no tax consequence
8000 tax on growth only

Answer 2

10000 no tax consequence

Question 3

During ira direct transfer aka direct rollover

Answer 3

Full amount gets reinvested from one plan to another

Question 4

All eligible to establish keogh retirement plan except

Sole proprietor of a service station who employed four empl
Sole proprietor of film development store with no employees
Hair dresser who operates her business at home
President and employee of family corporation

Answer 4

Pres and employee of family corporation

Question 5

Co has simplified employee pension plan

Same as 401 k
Same as ira with same contribution limits
Undefined contribution plan for large businesses
Qualified plan for a small business

Answer 5

Qualified plan for a small business

Question 6

Type of qualified plan suited for small employer or for self employed

Employer sponsored ira with expanded contribution rate of up to 25 of compensation or spec maximum contribution amount

Answer 6

Simplified employee pension plan

Question 7

1000 hours per year

Answer 7

Keogh

Question 8

Incorrect regarding SEP plan

Suitable for large companies
Allow employer to make annual tax deductible contributions up to 25% of employees earned income
Higher tax deductible contribution limit than IRA
Contributions are not included in employees gross income

Answer 8

Suitable for large companies

Question 9

Under simple plan which of following is true re taxation on contributions and earnings

Tax deferred until withdrawn
Must be paid in full
Matching can be 50% of salary
75% of contributions are taxed

Answer 9

Tax deferred until withdrawn

Question 10

For nonprofits and public school systems

Answer 10

403b plans

Question 11

Available for small businesses that employ no more than 100 and rec at least 5000 in compensation during previous year

Answer 11

Simple

Question 12

Simple require all following except

At least 1000 emps
No other qualified plan can be used
No more than 100 emps
Must receive a minimum of 5000 in annual compensation

Answer 12

1000 employees

Question 13

Primary purpose of 401k plan

Retirement
Education funds
Rec dividends over certain period
Life insurance distribution

Answer 13

Retirement