XCEL CHAPTER 10 EXAM 2025
QUESTIONS AND ANSWERS
Which of these statements concerning traditional IRAs is correct? - ANS Earnings are taxable
when withdrawn
Which of the following is NOT a federal requirement of a qualified plan? - ANS Employee
must be able to make unlimited contributions
Within how many days must a rollover be completed in order to avoid being taxed as current
income? - ANS 60
Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions
without a tax penalty? - ANS 59 1/2
A Roth IRA owner must be at least what age in order to make tax-free withdrawals? - ANS 59
1/2 and owned account for a minimum of 5 years
Dana is an employee who deposits a percentage of her income into her individual annuity. Her
company also contributes a percentage into a separate company pension plan. What kind of
annuity is this considered? - ANS Qualified retirement annuity
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any
money withdrawn. - ANS income
1 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
Which of these statements concerning traditional IRAs is correct? - ANS Earnings are taxable
when withdrawn
Which of the following is NOT a federal requirement of a qualified plan? - ANS Employee
must be able to make unlimited contributions
Within how many days must a rollover be completed in order to avoid being taxed as current
income? - ANS 60
Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions
without a tax penalty? - ANS 59 1/2
A Roth IRA owner must be at least what age in order to make tax-free withdrawals? - ANS 59
1/2 and owned account for a minimum of 5 years
Dana is an employee who deposits a percentage of her income into her individual annuity. Her
company also contributes a percentage into a separate company pension plan. What kind of
annuity is this considered? - ANS Qualified retirement annuity
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any
money withdrawn. - ANS income
1 @COPYRIGHT THEBRIGHT 2025/2026
