Retirement Savings/Income Planning

Question 1

What is the max contribution formula if an employer matches contributions to a SIMPLE IRA

Answer 1

100% match of the first 3% deferred by the employee

Question 2

Who is an eligible beneficiary for an Inherited IRA?

Answer 2

Surviving spouse, minor child of decedent, chronically ill, other bene’s not more than 10 years younger than the decedent. Distributions can be taken over the bene’s life, except for minors when they turn 21

Question 3

Who is a non-eligible beneficiary for an Inherited IRA?

Answer 3

non spouse bene, see through trusts, successor bene’s, children who are no longer 21 years old. The 10 year rule apply to these bene’s.

Question 4

Who is a non-designated beneficiary for an Inherited IRA?

Answer 4

estate, charities, trust not qualifying as a designated bene. The five year rule generally applies for depletion.

Question 5

For a self-employed individual, the Medicare tax is ___, payable on 92.35% of net earnings from self-employment without a maximum cap. In addition, a ___ Additional Medicare Surtax applies to 92.35% of net earnings from self-employment on the amounts for Single filers exceeding _____.

Answer 5

2.9%; .9%; 200k

Question 6

a ___ Additional Medicare Surtax applies to 92.35% of net earnings from self-employment on the amounts for Single filers exceeding _____.

Answer 6

.9%; 200k

Question 7

Contributions to a Roth IRA (are/are not) deductible?

Answer 7

are

Question 8

What makes an employee an active participant in a traditional db pension plan for IRA contribution deduction purposes?

Answer 8

If an employee is eligible for participation in a traditional defined benefit pension plan, they are accruing a pension benefit

Question 9

Regular Roth Contributions receive the following Non-Qualified Distribution treatment (2):

Answer 9

No Income Tax
No Penalty