XCEL CHAPTER 9 - RETIREMENT
PLANS EXAM 2025 QUESTIONS AND
ANSWERS
What type of employee welfare plans are not subject to ERISA regulations? - ANS Church
plans
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan,
minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? -
ANS Income taxes plus a 10% penalty tax on $30,000
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? -
ANS employee
Rick recently died and left behind an individual IRA account in his name. His widow was
forwarded the balance of the IRA. The widow qualifies for the: - ANS marital deduction
Traditional individual retirement annuity (IRA) distributions must start by - ANS April 1st of
the year following the year the participant attains age 70 1/2
What is the maximum number of employees (earning at least $5,000) that an employer can
have in order to start a simple retirement plan? - ANS 100
At age of 45, individual withdraws $50,000 from his qualified profit-sharing plan and then
deposits this amount into personal savings account. This action would result in: -
ANS Income tax and a 10% penalty assessed upon funds withdrawn from the qualified plan
1 @COPYRIGHT THEBRIGHT 2025/2026
PLANS EXAM 2025 QUESTIONS AND
ANSWERS
What type of employee welfare plans are not subject to ERISA regulations? - ANS Church
plans
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan,
minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? -
ANS Income taxes plus a 10% penalty tax on $30,000
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? -
ANS employee
Rick recently died and left behind an individual IRA account in his name. His widow was
forwarded the balance of the IRA. The widow qualifies for the: - ANS marital deduction
Traditional individual retirement annuity (IRA) distributions must start by - ANS April 1st of
the year following the year the participant attains age 70 1/2
What is the maximum number of employees (earning at least $5,000) that an employer can
have in order to start a simple retirement plan? - ANS 100
At age of 45, individual withdraws $50,000 from his qualified profit-sharing plan and then
deposits this amount into personal savings account. This action would result in: -
ANS Income tax and a 10% penalty assessed upon funds withdrawn from the qualified plan
1 @COPYRIGHT THEBRIGHT 2025/2026
