Retain Flashcards

1
Q

Which considered non qualified retirement plan

Roth IRA
Split dollar plan
401k
Keogh plan

A

Split dollar plan

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

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

A

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

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

If retirement plan or annuity is qualified then

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

A

Approved by irs

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

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

A

Plan must provide offset for social security benefits

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

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

A

Taxation on accumulation

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

Contributions to qualified plan are

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

A

Subject to vesting requirements

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

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

A

Non qualified plans

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

Following are true of tax qualified annuities except

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

A

Emp contributions are not tax deductible

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

Different in qualified vs non qualifiedd retirement plans EXCEPT

Taxation of contributions
Irs approval requirements
Taxation on accumulation

A

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

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

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

Non qualified ira
Standard ira
Traditional ira
Roth IRA

A

Roth IRA

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

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

Met requirements to own percentage of retirement plan

A

Vesting

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

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

A

Non qualified plan

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

Contributions to a traditional ira are with

A

Pretax dollars (tax deductible)

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

Contributions to a Roth IRA are with

A

After tax dollars and not tax tax deductible

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

Pretax dollars

A

Tax deductible

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

After tax

A

Not tax deductible

17
Q

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

A

One not covered by Emp sponsored plan who has earned income