Pearson Vue- Retirement and Other
insurance Concepts Review Exam
Questions & Answers (Grade A+)
What does a 401(k) plan generally provide its participants? -
correct answer ✅Salary-deferral contributions
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? -
correct answer ✅50%
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
What determine the full amount of social security retirement
benefits a qualified individual is entitled to receive? -
correct answer ✅Primary insurance Amount (PIA)
To be eligible for Social Security disability benefits, an employee
must be unable to perform -
correct answer ✅any occupation
, Pearson Vue- Retirement and Other
insurance Concepts Review Exam
Questions & Answers (Grade A+)
Which tax would an IRA participant be subjected to on distributions
received prior to age 59 1/2? -
correct answer ✅Ordinary income tax and a 10% tax penalty for
early withdrawal
A 55 year old recently received a $30,000 distribution from a
previous employers 401k plan, minus $6,000 withholding. Which
federal taxes apply if none of the funds were rolled over? -
correct answer ✅Income taxes plus a 10% penalty tax on $30,000
Which is old age and survivors health insurance (OASDHI) also
known as? -
correct answer ✅Social security
Which of the following does social security not provide benefits
for? -
correct answer ✅dismemberment
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
insurance Concepts Review Exam
Questions & Answers (Grade A+)
What does a 401(k) plan generally provide its participants? -
correct answer ✅Salary-deferral contributions
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? -
correct answer ✅50%
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
What determine the full amount of social security retirement
benefits a qualified individual is entitled to receive? -
correct answer ✅Primary insurance Amount (PIA)
To be eligible for Social Security disability benefits, an employee
must be unable to perform -
correct answer ✅any occupation
, Pearson Vue- Retirement and Other
insurance Concepts Review Exam
Questions & Answers (Grade A+)
Which tax would an IRA participant be subjected to on distributions
received prior to age 59 1/2? -
correct answer ✅Ordinary income tax and a 10% tax penalty for
early withdrawal
A 55 year old recently received a $30,000 distribution from a
previous employers 401k plan, minus $6,000 withholding. Which
federal taxes apply if none of the funds were rolled over? -
correct answer ✅Income taxes plus a 10% penalty tax on $30,000
Which is old age and survivors health insurance (OASDHI) also
known as? -
correct answer ✅Social security
Which of the following does social security not provide benefits
for? -
correct answer ✅dismemberment
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
