Retirment Plans

Question 0

Which of the following statements are true about individual retirement accounts?
A. Contributions are allowed based solely upon personal service income
B. Contributions may be made if the individual is covered by another type of retirement plan
C. All contributions reduce the individuals taxable income
D. To remain tax-deferred, distributions from other retirement plans must be rolled over within 60 days

Answer 0

A B and D are correct

Question 1

Which of the following statements are true about Roth IRA's?
A. Contributions are not tax-deductible
B. Contributions are tax deductible
C. Distributions are taxable
D. Distributions are not taxable

Answer 1

The correct answer is a and D

Question 2

Section 457 plans are:
A. For corporate employees
B. For not for profit employees
C. Discriminatory
D. Non-discriminatory

Answer 2

Correct answers are B and C
Section 457 plans are government sponsored deferred compensation plans that are only available to highly paid employees so they are discriminatory

Question 3

Distributions after age 59 1/2 from non-tax qualified retirement plans are
A. 100% taxable
B. Partial tax free return of capital and partial taxable income
C. 100% tax-free
D. 100% tax-deferred

Answer 3

The correct answer is B
Contributions to nontax qualified plan such as variable annuities are not tax-deductible. They are made with after-tax dollars. Earnings accrue tax-deferred. When distributions commence the return of original capital is not taxed only the earnings are taxed

Question 4

Distributions after age 59 1/2 from tax qualified retirement plans are
A. 100% taxable
B. Partial tax-free return of capital and partial taxable income
C. 100% tax-free
D. 100% tax deferred

Answer 4

The correct answer is A
Contributions to tax qualified plans are tax-deductible. They are made with before tax dollars and so those funds were never taxed. earnings accrue tax-deferred. When distributions commence, since no tax was paid on the entire amount the distribution is 100% taxable

Question 5

In 2014 the maximum contribution that an individual under age 50 can make to an IRA is what?

Answer 5

The correct answer is $5500

Question 6

In 2014 the maximum contribution of that an individual over the age of 50 can make to an IRA is what?

Answer 6

The correct answer is $6500

Question 7

To avoid penalties, funds cannot be withdrawn from qualified retirement plans before what age?

Answer 7

The correct answer is 59 1/2 years old

Question 8

Distributions from section 403B tax-deferred annuity’s are:
A. 100% taxable
B. Partial tax-free return of capital and partial taxable income
C. 100% tax-free
D. 100% tax deferred

Answer 8

The correct answer is a
Contributions to tax qualified plan such as 403B tax-deferred annuity is for nonprofit organization employees are tax-deductible. They are made with before tax dollars hands those funds were never taxed. Earnings accrued tax-deferred which means distributions were never taxed and will be taxed at the 100% rate

Question 9

Are tax qualified plans deductible or not deductible against the contributors taxable income?

Answer 9

Deductible against contributors taxable income.
This means the contributions have not been taxed. Earnings in the plan build up tax-deferred. When distributions are taken from the plan the entire distribution amount is taxable. All ERISA plans are tax qualified

Question 10

Are contributions to non-tax qualified retirement plans deductible or not deductible against the contributors taxable income?

Answer 10

They are not deductible
This means the contribution amounts have been taxed. Earnings in the plan build up a tax-deferred. When distributions are taken from the plan, the portion of distributions that represent that build up is taxable. The portion that represents the original contribution is a non-taxable return of capital