Qualified Plans

Question 1

Examples of qualified plans

Answer 1

IRA, 401k, KEOGH/HR-10, SEP, SIMPLE

Question 2

What is required to qualify an individual to contribute to a traditional Ira?

Answer 2

Earned income

Question 3

What are the income tax benefits of a qualified plan?

Answer 3

Employer contributions are tax deductible and are not taxed as income to the employee. Earnings accumulate tax deferred

Question 4

Simple plans are available for groups of how many employees?

Answer 4

No more than 100

Question 5

Primary purpose of a 401k

Answer 5

Provide retirement income

Question 6

What type of plan is a 401k?

Answer 6

Qualified profit sharing plan

Question 7

In what form of payment must the contributions to a traditional IRA be made?

Answer 7

Cash

Question 8

For a retirement plan to be qualified it must be designed to benefit who?

Answer 8

Employees

Question 9

A defined benefit qualified plan is structured based on what

Answer 9

A pre determined benefit amount

Question 10

Is a defined contribution plan a qualified plan?

Answer 10

Yes

Question 11

When do you have to start taking distributions for most qualified retirement plans

Answer 11

No later than April 1 of the year after you turn 70.5

Question 12

Coverage requirement for a qualified plan requires

Answer 12

A broad range of employees to be covered. The trustees must manage the plan for the benefit of the participants

Question 13

Deferred compensation

Answer 13

Employee forgoes current pay in exchange for future benefits

Question 14

Does the irs limit the amount contributed to a qualified plan?

Answer 14

Yes

Question 15

Is there a maximum dollar amount for a rollover of one qualified plan to another?

Answer 15

No

Question 16

All or part of a distribution from a qualified plan may be rolled over into an Ira with or without tax

Answer 16

Without tax

Question 17

KEOUGH plans are available to self employed sole proprietors, partners, and employees but not to

Answer 17

Corporate officers

Question 18

Profit sharing plan

Answer 18

A Corp sets up a qualified plan to contribute a portion of their net income for the benefit of employees

Question 19

Contributions to a SIMPLE plan by participants must be vested when

Answer 19

Immediately

Question 20

When surrendering a 403b for cash under age 59.5

Answer 20

All the proceeds are taxable as ordinary income plus the proceeds are subject to 10% penalty