Module 7 Quiz Study Guide Questions
Well Answered 2026-2027 Set.
Employee elective deferrals to a 401(k) may be subject to which of the following vesting
schedules?
A)
None of these
B)
Immediate vesting
C)
Three-year cliff vesting
D)
Two- to six-year graded vesting - Answer B)
Immediate vesting
Which of the following retirement plan distributions is subject to 20% withholding?
A)
A rollover of IRA assets from one IRA to another
B)
None of these
C)
A direct transfer of IRA assets between IRA custodians
D)
A lump sum distribution from a 401(k) plan - Answer D)
A lump sum distribution from a 401(k) plan
Which of these would an individual receive at full retirement age (FRA)?
A)
AIME
B)
RMD
C)
PIA
D)
COLA - Answer C)
, PIA
What is the potential maximum contribution that a 51-year-old individual could make to an IRA
account in 2022?
A)
$8,000
B)
$5,000
C)
$7,000
D)
$6,000 - Answer C)
$7,000
Which of these statements regarding SEP-IRAs is NOT correct?
A)
The plan only allows employer contributions.
B)
It is an IRA established by an employee.
C)
The plan works well for small businesses because of its simplicity.
D)
Earnings on the contributions grow tax-deferred. - Answer B)
It is an IRA established by an employee.
Which of the following is a primary source of retirement income?
Medicare
Social Security
Savings and investments
Employer-provided retirement plans
A)
II, III, and IV
B)
II and IV
C)
Well Answered 2026-2027 Set.
Employee elective deferrals to a 401(k) may be subject to which of the following vesting
schedules?
A)
None of these
B)
Immediate vesting
C)
Three-year cliff vesting
D)
Two- to six-year graded vesting - Answer B)
Immediate vesting
Which of the following retirement plan distributions is subject to 20% withholding?
A)
A rollover of IRA assets from one IRA to another
B)
None of these
C)
A direct transfer of IRA assets between IRA custodians
D)
A lump sum distribution from a 401(k) plan - Answer D)
A lump sum distribution from a 401(k) plan
Which of these would an individual receive at full retirement age (FRA)?
A)
AIME
B)
RMD
C)
PIA
D)
COLA - Answer C)
, PIA
What is the potential maximum contribution that a 51-year-old individual could make to an IRA
account in 2022?
A)
$8,000
B)
$5,000
C)
$7,000
D)
$6,000 - Answer C)
$7,000
Which of these statements regarding SEP-IRAs is NOT correct?
A)
The plan only allows employer contributions.
B)
It is an IRA established by an employee.
C)
The plan works well for small businesses because of its simplicity.
D)
Earnings on the contributions grow tax-deferred. - Answer B)
It is an IRA established by an employee.
Which of the following is a primary source of retirement income?
Medicare
Social Security
Savings and investments
Employer-provided retirement plans
A)
II, III, and IV
B)
II and IV
C)
