Unit 11 - Retirement Accounts

Question 1

Are qualified or non qualified plan contributions tax deductible?

Answer 1

qualified

Question 2

Do qualified or non qualified plans need approval from IRS ?

Answer 2

qualified

Question 3

is tax on accumulation tax deferred or non taxable in qualified and non qualified plans?

Answer 3

both are tax deferred

Question 4

how are withdrawals taxed in a qualified plan?

Answer 4

all withdrawals are taxed

Question 5

how are withdrawals taxed in a non qualified plan

Answer 5

the excess over cost base is taxed

Question 6

which plan must be a trust?

Answer 6

qualified plans

Question 7

name two types of nonqualified plans

Answer 7

deferred compmensation and payroll deduction plans

Question 8

define nonqualified deferred compensation plan

Answer 8

agreement btwn a company & employee which employee agrees to defer receipt of current income in favor of payout at retirement

Question 9

define payroll deduction plan

Answer 9

employees can authorize employer to deduct a specified amount for retirement savings from paycheck. (note: 401(k) are considered salary reduction plans and therefore NOT payroll deduction plans & are qualified).

Question 10

Are HSAs (health saving accounts) pre or post tax contributions?

Answer 10

before-tax contributions

Question 11

Roth IRAs - pre-tax contributions or after-tax contributions?

Answer 11

after-tax contributions

Question 12

Are contributions for Roth IRAs tad deductible?

Answer 12

no

Question 13

Are contributions for Traditional IRAs tad deductible?

Answer 13

Yes