Benefits And Distributions Of Qualified Plans Flashcards

1
Q

Loans

How much can be taken out for a loan of qualified plans?

50% of vested balance; up to $50,000 (Outstanding at all times)

Vested below $10,000: entire amount is available

Vested balance $10,000 - $20,000: $10,000 is available

Vested balances of $20,000 - $50,000 50% is available

Qualified disaster loan up to 100% of vested account balance limited to $100,000

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

Loans

$50,000 loan limit is reduced by what?

A

The highest outstanding loan balance within the previous 12 months

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

Loans

What is the period of payback for loans from a qualified plan?

A

Limited to no more than five years

Exception , used to purchase a principal residence then it can be a reasonable amount of time

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

What are the forms of survivorship benefits for a spouse that are required for all pension plans?

A

Qualified pre-retirement survivor annuity

Qualified joint and survivor annuity

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

How must a spouse wave their rights from a pension plan survivorship benefits?

A

Spouse must consent in writing

Waivers irrevocable

Witnessed by notary or official of the plan

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

ESOPs, profit sharing, and stock bonus plans generally do not require such benefits of Survivor benefits unless what?

A

If nonforfeitable portion is payable to spouse as death benefit

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

All pension plans are required to automatically offer what type of annuity if you are single and if you are married?

A

Single: Life Annuity (Single Life Annuity)

Married: Joint and Survivor Annuity

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

Defined Benefit Plans

Option that eliminates the benefit to a spouse, the spouse must what?

A

Consent, in writing and must be if front of an notary

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

Defined benefit pension

Can make in-service distributions to employee participants after what age?

A

59 1/2 or older

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

Define contribution pension plans

Are they subject to ERISA and must they meet the pre retirement and joint and survivor annuity rules?

A

Yes

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

Defined contribution, pension plans may allow in service distributions to employee participants at what age

A

59 1/2 an older

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

Retirement plan rollovers

What is a rollover?

A

Associated with a transfer in which the participant takes possession of the distribution and deposits the distribution into another eligible plan within 60 days.

Distribution is subject to mandatory 20% income tax withholding

IRS limits this type of rollover from IRA to IRA to once per 12 month period, regardless of the number of accounts, a participant maintains

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

Retirement plan rollovers

What is a trustee to trustee direct transfer?

A

Funds are transferred directly from one to another without the participant, taking receipt of the distribution

Not subject to mandatory 20% income tax withholding

Not limited in number in a given year

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