Retirement Flashcards
Taking SS before Full Retirement
Decreases each year between 67 and 64 by 6.67%
64 - 62 decreases by 5%
Defined Benefit Plans
Types:
-Traditional Defined benefit plan
-Cash Balance Plan
max contribution up to of 345k of comp. Actuarial calc
Defined Contribution Plans
Money Purchase
Target benefit
Profit sharing
Stock bonus
-lessor of 100% of comp or $69k
Forfeiture
Simple IRA deferral, match, max EEs, EE requirements
-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
SEP IRA
Deferrals?,EE requirements, max contribution, what tax is not paid
-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)
403(b) (different names, who can have them?, catch up, common stock?)
-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
457
-No churches
-double dipping allowed (defer money in another type of account)
-only governmental 457s can be rolled into IRAs (non gov need to be rolled into non gov)
Key EE
Any of the following:
->5% owner
- officer and comp > than 220k
- > 1% owner and comp > 155k
When is a plan top heavy?
When > 60% of aggregate benefits are allocated to key EEs.
Keogh Self Employed contributions
EE contribution: .15= Self Employed.1212
EE contribution: .35= Self Employed.1859
Can Rail Road EEs get any SS benefits?
Only lump sum death benefit
Retirement Calc and College Calc
Step 1: Inflate - beg mode, FV
Step 2: I need - Beg mode, PV
Step 3: Invest - end mode, PMT
Taxing SS Benefits due to income
Which plans can EEs put deferrals in?
-401K
-457
-403b
-Simple 16k
69k limit per person or company?
23k deferral limit per person or company?
69k limit per company
23k limit per person
What is Coda?
Profit sharing 401k
Permitted Disparity
Base = permitted disparity with a cap of 5.7% for permitted disparity
Deductible interest from 401k loan
Only for purchase of primary residence
And if you are not a key EE
Roth Rules (distributions)
Roth distributions
RMD still working exemption
IRAs and ER sponsored plans
IRA - No. must take RMDs
If less than 5% owners you don’t have to take RMDs
IRA Keys (seps, simple, sarsep)
Loan, life, creditors, vesting, rmds?
What are control groups used for? (Retirement plans)
To find out if the program is discriminatory.
Her simple 401(k)s are always fully vested?
No
How much of a non qualified plan contribution be in term and universal life premiums? How much in whole life?
Term and uni: 25%
Whole life: 50%
What types of investments can be in a non-qualified deferred compensation plan?
Any
