XCEL RETIREMENT PLANS EXAM QUESTIONS WITH COMPLETE
100% VERIFIED SOLUTIONS ALREADY PASSED
Which plan is intended to be used by a sole proprietor and the employees of that
business?
Keogh Plan
In an individual retirement account (IRA), rollover contributions are:
not limited by dollar amount
An employer that offers a qualified retirement plan to its employees is eligible to:
make tax-deductible contributions to the plan
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%
Which of the following is TRUE about a qualified retirement that is "top heavy"?
more than 60% of plan assets are in key employee accounts
Which product would best serve a retired individual looking to invest a lump-sum
of money through an insurance company?
annuity
Tom has a qualified retirement plan with his employer that is currently considered
to be 80% "vested". How can this be interpreted?
if Tom's employment is terminated, 20% of the funds would be forfeited
, In a qualified retirement plan, the yearly contributions to an employee's account:
are restricted to maximum levels set by the IRS
An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age?
59 1/2
When funds are shifted straight from one IRA to another IRA, what percentage of
the tax is withheld?
none
Which of these retirement plans can be started by an employee, even if another
plan is in existence?
Individual Retirement Account (IRA)
Which tax would an IRA participant be subjected to on distributions received
prior to age 59 1/2?
ordinary income tax and a 10% tax penalty for early withdrawal
How long does an individual have to "rollover" funds from an IRA or qualified
plan?
60 days
Premature IRA distributions are assessed a penalty tax of:
10%
An individual working part-time has an annual income of $25,000. If this individual
has an IRA, what is the maximum deductible IRA contribution allowable?
$2,500
100% VERIFIED SOLUTIONS ALREADY PASSED
Which plan is intended to be used by a sole proprietor and the employees of that
business?
Keogh Plan
In an individual retirement account (IRA), rollover contributions are:
not limited by dollar amount
An employer that offers a qualified retirement plan to its employees is eligible to:
make tax-deductible contributions to the plan
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%
Which of the following is TRUE about a qualified retirement that is "top heavy"?
more than 60% of plan assets are in key employee accounts
Which product would best serve a retired individual looking to invest a lump-sum
of money through an insurance company?
annuity
Tom has a qualified retirement plan with his employer that is currently considered
to be 80% "vested". How can this be interpreted?
if Tom's employment is terminated, 20% of the funds would be forfeited
, In a qualified retirement plan, the yearly contributions to an employee's account:
are restricted to maximum levels set by the IRS
An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age?
59 1/2
When funds are shifted straight from one IRA to another IRA, what percentage of
the tax is withheld?
none
Which of these retirement plans can be started by an employee, even if another
plan is in existence?
Individual Retirement Account (IRA)
Which tax would an IRA participant be subjected to on distributions received
prior to age 59 1/2?
ordinary income tax and a 10% tax penalty for early withdrawal
How long does an individual have to "rollover" funds from an IRA or qualified
plan?
60 days
Premature IRA distributions are assessed a penalty tax of:
10%
An individual working part-time has an annual income of $25,000. If this individual
has an IRA, what is the maximum deductible IRA contribution allowable?
$2,500
