Retain

Question 1

Which considered non qualified retirement plan

Roth IRA
Split dollar plan
401k
Keogh plan

Answer 1

Split dollar plan

Question 2

Statements re non qualified retirement plan true except

Can discriminate as to who may participate
Plan not approved for favorable tax treatment by irs
Employer can rec a current tax deduction for any contributions made to plan
Plan is legal method of accumulating money for retirement needs

Answer 2

Can rec a current tax deduction for any contributions made to the plan

Question 3

If retirement plan or annuity is qualified then

It is noncancellable
Approved by irs
Has penalty for early withdrawal
Accept after tax contributions

Answer 3

Approved by irs

Question 4

All requirements of qualified plan must be met except

Plan must be for exclusive benefits of Emp and beneficiaries
Plan must be permanent written and legally binding
Plan must provide offset for social security benefits

Answer 4

Plan must provide offset for social security benefits

Question 5

All following would be different between qualified and non qualified retirement plans except

Taxation of contributions
Irs approval requirements
Taxation on accumulation
Taxation of withdrawals

Answer 5

Taxation on accumulation

Question 6

Contributions to qualified plan are

After tax contributions
Taxed annually as salary
Subject to vesting requirements
May discriminate in favor of highly paid Emp

Answer 6

Subject to vesting requirements

Question 7

Individual annuities
Deferred compensation plans for highly paid execs
Split dollar ins arrangements
Section 162 exec bonus plans

Answer 7

Non qualified plans

Question 8

Following are true of tax qualified annuities except

Must be irs approved
Withdrawals are taxed
Contributions are not tax deductible

Answer 8

Emp contributions are not tax deductible

Question 9

Different in qualified vs non qualifiedd retirement plans EXCEPT

Taxation of contributions
Irs approval requirements
Taxation on accumulation

Answer 9

Taxation on accumulation as accumulation is deferred in both types of plans

Question 10

Which retirement acct does not require owner to start distributions at age 73

Non qualified ira
Standard ira
Traditional ira
Roth IRA

Answer 10

Roth IRA

These can continue regardless of account owner’s age as ira has to begin specific age

Question 11

Met requirements to own percentage of retirement plan

Answer 11

Vesting

Question 12

Emp rec no current tax deduction for any contribution made to a

Answer 12

Non qualified plan

Question 13

Contributions to a traditional ira are with

Answer 13

Pretax dollars (tax deductible)

Question 14

Contributions to a Roth IRA are with

Answer 14

After tax dollars and not tax tax deductible

Question 15

Pretax dollars

Answer 15

Tax deductible

Question 16

After tax

Answer 16

Not tax deductible

Question 17

Who can make a fully deductible contributions to a traditional ira

One not covered by Emp sponsored plan who earned income
One making contributions to an educational ira
One whose contributions funded by return on investment

Answer 17

One not covered by Emp sponsored plan who has earned income