Retain Flashcards
Which considered non qualified retirement plan
Roth IRA
Split dollar plan
401k
Keogh plan
Split dollar plan
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
Can rec a current tax deduction for any contributions made to the plan
If retirement plan or annuity is qualified then
It is noncancellable
Approved by irs
Has penalty for early withdrawal
Accept after tax contributions
Approved by irs
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
Plan must provide offset for social security benefits
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
Taxation on accumulation
Contributions to qualified plan are
After tax contributions
Taxed annually as salary
Subject to vesting requirements
May discriminate in favor of highly paid Emp
Subject to vesting requirements
Individual annuities
Deferred compensation plans for highly paid execs
Split dollar ins arrangements
Section 162 exec bonus plans
Non qualified plans
Following are true of tax qualified annuities except
Must be irs approved
Withdrawals are taxed
Contributions are not tax deductible
Emp contributions are not tax deductible
Different in qualified vs non qualifiedd retirement plans EXCEPT
Taxation of contributions
Irs approval requirements
Taxation on accumulation
Taxation on accumulation as accumulation is deferred in both types of plans
Which retirement acct does not require owner to start distributions at age 73
Non qualified ira
Standard ira
Traditional ira
Roth IRA
Roth IRA
These can continue regardless of account owner’s age as ira has to begin specific age
Met requirements to own percentage of retirement plan
Vesting
Emp rec no current tax deduction for any contribution made to a
Non qualified plan
Contributions to a traditional ira are with
Pretax dollars (tax deductible)
Contributions to a Roth IRA are with
After tax dollars and not tax tax deductible
Pretax dollars
Tax deductible