Life, Accident and Health Insurance ( Latest 2023/2024 ) Complete Questions & Answers (Solved) 100% Correct

Life, Accident and Health Insurance ( Latest 2023/2024 ) Complete Questions & Answers (Solved) 100% Correct 1. Qualified Plan Answer: -approved by IRS for favorable tax treatment - tax deffered growth 2. Qualified PlanRequirements Answer: 1) Be in writing 2)provided for benefit of employee 3) must satisfy age and serive standards 4) cannot be discriminatory 5) contributions cannot exceed yearly maximus 6) must provide survivorship benefits 7) must meet miniumum vesting standards 8) cannot be top heavy 3. Advantages of Qualified plans Answer: - employer and employee contributions are taxdeductivble and accumulate tax deferred - Withdrawls before 59.5 is a 10% penalty - must begin miniumum distributions by age 70.5 4. Qualified Plan distributions Answer: - taxable upon withdrawl - 10% penalty upon withdrawl before 59.6 - can take out w/o penalty if death, divorce, qualified financial hardship, plan loan or qualified rollover, 1st time home buyer, disability of owner - if you take out the money early, its a 20% penalty - must rollover w/in 60 days or its considered a premature distribution 5. Penalty forWithdrawl of Qualified Plan Answer: - a 10% penalry plus applicable stateand federal taxes 6. IRA IIndividual Retirement Account) Answer: - all individuals who have earned income - possible tax deductions - tax deferral of gains - Can contribute up to 5,000 - can add 1,000 "catch up" if over 50