Retirement

Question 1

Taking SS before Full Retirement

Answer 1

Decreases each year between 67 and 64 by 6.67%
64 - 62 decreases by 5%

Question 2

Defined Benefit Plans

Answer 2

Types:

-Traditional Defined benefit plan
-Cash Balance Plan

max contribution up to of 345k of comp. Actuarial calc

Question 3

Defined Contribution Plans

Answer 3

Money Purchase
Target benefit
Profit sharing
Stock bonus

-lessor of 100% of comp or $69k

Question 4

Forfeiture

Question 5

Simple IRA

Answer 5

-16k deferrals
-ER mandatory dollar for dollar matching up to 3% of EEs compensation
-no deferral no match
-no more than 100 EEs
-fully vested
-EE req: 5k earned previous 2 yrs

Question 6

SEP IRA

Answer 6

-No EEs deferral
-lesser of 25% of comp (max 345k) or 69k
-ER contributions are flexible
- ER contribution % must match the EEs
-EEs must have worked 3/5 years (part-time counts) and earned more than $750 in the year
-No deferrals (no fica and futa)

Question 7

403(b)

Answer 7

-aka Tax Deferred Annuity (TDA) or tax sheltered annuity (TSA)
- tax exempt organizations 501c3
-extra catch up 15 yrs 3k on top of 50 yrs. Old 7500 catch up
-No common stock

Question 8

457

Answer 8

-No churches
-double dipping allowed
-only governmental 457s can be rolled into IRAs (non gov need to be rolled into non gov)

Question 9

Key EE

Answer 9

Any of the following:
->5% owner
- officer and comp > than 220k
- > 1% owner and comp > 155k

Question 10

When is a plan top heavy?

Answer 10

When > 60% of aggregate benefits are allocated to key EEs.

Question 11

Keogh Self Employed contributions

Answer 11

EE contribution: .15= Self Employed.1212
EE contribution: .35= Self Employed.1859

Question 12

Can Rail Road EEs get any SS benefits?

Answer 12

Only lump sum death benefit

Question 13

What are NONqualified Plans

Answer 13

IRAs, 457,

Question 14

Retirement Calc and College Calc

Answer 14

Step 1: Inflate - beg mode, FV
Step 2: I need - Beg mode, PV
Step 3: Invest - end mode, PMT

Question 15

Taxing SS Benefits due to income

Answer 15

Question 16

Which plans can EEs put deferrals in?

Answer 16

-401K
-457
-403b
-Simple 16k

Question 17

69k limit per person or company?
23k deferral limit per person or company?

Answer 17

69k limit per company
23k limit per person

Question 18

What is Coda?

Answer 18

Profit sharing 401k

Question 19

Permitted Disparity

Answer 19

Base = permitted disparity with a cap of 5.7% for permitted disparity

Question 20

Deductible interest from 401k loan

Answer 20

Only for purchase of primary residence
And if you are not a key EE

Question 21

Roth Rules

Answer 21

Question 22

Roth distributions

Answer 22

Question 23

Do IRA have a still working exemption

Answer 23

No. If less than 5% owners you don’t have to take RMDs