Retirement Plans

Question 1

Post-tax dollar contributions are found in

Answer 1

Roth IRA investments

Question 2

A sole proprietor may use this plan ONLY if the employees of this business are included

Answer 2

Keogh Pension Plan

Question 3

An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowed?

Answer 3

$6,000

Question 4

What type of employee welfare plans are not subject to ERISA regulations?

Answer 4

Church plans

Question 5

Tom has a qualified retirement plan with his employer that is currently considered to be 80% “vested”. How can this be interpreted?

Answer 5

If Tom’s employment is terminated, 20% of the funds would be forfeited.

Question 6

A 55 year old recently received a $30,000 distribution from a previous employer’s 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?

Answer 6

Income taxes plus a 10% penalty tax on $30,000

Question 7

In an individual retirement account (IRA), rollover contributions are

Answer 7

Not limited by dollar amount