XCEL CH.10 EXAM 2025 QUESTIONS
AND ANSWERS
Under a Traditional IRA, interest earned is taxed - ANS upon distribution
All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals
EXCEPT - ANS Stock purchase
Who were Keogh plans designed to provide pension benefits for? - ANS The self-employed
Which of the following would disqualify a company's retirement plan from receiving favorable
tax treatment? - ANS It is temporary
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
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
Which of these retirement plans do NOT qualify for a federal income tax deduction? -
ANS Roth IRA
Which of these statements concerning Traditional IRAs is CORRECT? - ANS Earnings are
taxable when withdrawn
1 @COPYRIGHT THEBRIGHT 2025/2026
AND ANSWERS
Under a Traditional IRA, interest earned is taxed - ANS upon distribution
All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals
EXCEPT - ANS Stock purchase
Who were Keogh plans designed to provide pension benefits for? - ANS The self-employed
Which of the following would disqualify a company's retirement plan from receiving favorable
tax treatment? - ANS It is temporary
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
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
Which of these retirement plans do NOT qualify for a federal income tax deduction? -
ANS Roth IRA
Which of these statements concerning Traditional IRAs is CORRECT? - ANS Earnings are
taxable when withdrawn
1 @COPYRIGHT THEBRIGHT 2025/2026
