RETIREMENT PLANS EXAM REVIEW WITH CORRECT ANSWERS

Post-tax dollar contributions are found in Correct Answer Roth IRA investments A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a Correct Answer profit-sharing plan 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? Correct Answer 100 A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid Correct Answer mandatory income tax withholding on the transfer amount 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 Correct Answer marital deduction Which plan is intended to be used by a sole proprietor and the employees of that business? Correct Answer Keogh Plan All of the following statements about traditional individual retirement accounts are false EXCEPT Correct Answer 10% penalty is applied to withdrawals before age 59 1/2 All of the following statements about traditional individual retirement accounts are Correct Answer -10% penalty is applied to withdrawals after age 59 1/2 -Withdrawals are normally tax-free to the recipient