Retirement Plans Exam Review ACTUAL
UPDATED QUESTIONS AND CORRECT
ANSWERS
Post-tax dollar contributions are found in - CORRECT ANSWERS✅✅Roth IRA
investments
A retirement plan that sets aside part of the company's net income for distributions to
qualified employees is called a - CORRECT ANSWERS✅✅profit-sharing plan
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 ANSWERS✅✅100
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
- CORRECT ANSWERS✅✅mandatory income tax withholding on the transfer amount
Rick recently died and left behind an individual IRA account in his name. His widow was
forwarded the balance of the IRA. The widow qualifies for the - CORRECT
ANSWERS✅✅marital deduction
Which plan is intended to be used by a sole proprietor and the employees of that business? -
CORRECT ANSWERS✅✅Keogh Plan
All of the following statements about traditional individual retirement accounts are false
EXCEPT - CORRECT ANSWERS✅✅10% penalty is applied to withdrawals before age 59
1/2
All of the following statements about traditional individual retirement accounts are -
CORRECT ANSWERS✅✅-10% penalty is applied to withdrawals after age 59 1/2
-Withdrawals are normally tax-free to the recipient
-Contributions are not tax deductible
Premature IRA distributions are assessed a penalty tax of - CORRECT ANSWERS✅✅10%
UPDATED QUESTIONS AND CORRECT
ANSWERS
Post-tax dollar contributions are found in - CORRECT ANSWERS✅✅Roth IRA
investments
A retirement plan that sets aside part of the company's net income for distributions to
qualified employees is called a - CORRECT ANSWERS✅✅profit-sharing plan
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 ANSWERS✅✅100
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
- CORRECT ANSWERS✅✅mandatory income tax withholding on the transfer amount
Rick recently died and left behind an individual IRA account in his name. His widow was
forwarded the balance of the IRA. The widow qualifies for the - CORRECT
ANSWERS✅✅marital deduction
Which plan is intended to be used by a sole proprietor and the employees of that business? -
CORRECT ANSWERS✅✅Keogh Plan
All of the following statements about traditional individual retirement accounts are false
EXCEPT - CORRECT ANSWERS✅✅10% penalty is applied to withdrawals before age 59
1/2
All of the following statements about traditional individual retirement accounts are -
CORRECT ANSWERS✅✅-10% penalty is applied to withdrawals after age 59 1/2
-Withdrawals are normally tax-free to the recipient
-Contributions are not tax deductible
Premature IRA distributions are assessed a penalty tax of - CORRECT ANSWERS✅✅10%
