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Chapter 9 Retirement Plans Quiz

Finance10 CardsCreated 3 months ago

This deck covers key concepts and questions related to retirement plans, including tax implications, plan types, and regulations.

An employer that offers a qualified retirement plan to its employees is eligible to

make tax-deductible contributions to the plan
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Key Terms

Term
Definition
An employer that offers a qualified retirement plan to its employees is eligible to
make tax-deductible contributions to the plan
A sole proprietor may use this plan ONLY if the employees of this business are included
a Keogh pension plan
Which product would best serve a retired individual looking to invest a lump sum of money through an insurance company
annuity
Premature IRA distributions are assessed a penalty tax of
10%
Who is normally considered to be the owner of a 403B tax sheltered annuity
the employee
What type of employee welfare plans are not subject to ERISA regulations
church plans

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TermDefinition
An employer that offers a qualified retirement plan to its employees is eligible to
make tax-deductible contributions to the plan
A sole proprietor may use this plan ONLY if the employees of this business are included
a Keogh pension plan
Which product would best serve a retired individual looking to invest a lump sum of money through an insurance company
annuity
Premature IRA distributions are assessed a penalty tax of
10%
Who is normally considered to be the owner of a 403B tax sheltered annuity
the employee
What type of employee welfare plans are not subject to ERISA regulations
church plans
Which of the following is true if the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made?
the account can be rolled into the surviving spouse's IRA
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan
50%
How long does an individual have to “rollover” funds from an IRA or qualified plan
60 days
What is the maximum number of employees (earning at least $5000) that an employer can have in order to start a SIMPLE retirement plan
100