XCEL CHAPTER 10 EXAM QUESTIONS WITH COMPLETE
SOLUTIONS CERIFIED GRADED A+
Which of the following is NOT a federal requirement of a qualified plan?
A. Must benefit a broad cross-section of employees
B. Employee must be able to make unlimited contributions
C. Vesting schedule must be defined
D. Employer establishes the plan
Employee must be able to make unlimited contributions
Which of the following employers is required to follow ERISA regulations?
A. A local government with 150 employees
B. A church with 30 employees
C. A local electrical supply company with 12 employees
D. A Canadian company with 300 employees working in the United States
A local electrical supply company with 12 employees
An example of a tax-qualified retirement plan would be a(n)
A. equity compensation plan
B. defined contribution plan
C. executive index plan
D. 1035 exchange plan
defined contribution plan
, Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____
taxes on any money withdrawn.
A. estate
B. probate
C. no
D. income
income
A Roth IRA owner must be at least what age in order to make tax-free
withdrawals?
A. 59 1/2 and owned account for a minimum of 10 years
B. 59 1/2 and owned account for a minimum of 5 years
C. 70 1/2 and owned account for a minimum of 10 years
D. 70 1/2 and owned account for a minimum of 5 years
59 1/2 and owned account for a minimum of 5 years
Which of the following would disqualify a company's retirement plan from
receiving favorable tax treatment?
A. Contains a vesting schedule
B. Contributions are applied with no regard to income
C. Formed for the sole benefit of employees and their beneficiaries
D. It is temporary
It is temporary
When a qualified plan starts making payments to its recipient, which portion of
the distributions is taxable?
SOLUTIONS CERIFIED GRADED A+
Which of the following is NOT a federal requirement of a qualified plan?
A. Must benefit a broad cross-section of employees
B. Employee must be able to make unlimited contributions
C. Vesting schedule must be defined
D. Employer establishes the plan
Employee must be able to make unlimited contributions
Which of the following employers is required to follow ERISA regulations?
A. A local government with 150 employees
B. A church with 30 employees
C. A local electrical supply company with 12 employees
D. A Canadian company with 300 employees working in the United States
A local electrical supply company with 12 employees
An example of a tax-qualified retirement plan would be a(n)
A. equity compensation plan
B. defined contribution plan
C. executive index plan
D. 1035 exchange plan
defined contribution plan
, Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____
taxes on any money withdrawn.
A. estate
B. probate
C. no
D. income
income
A Roth IRA owner must be at least what age in order to make tax-free
withdrawals?
A. 59 1/2 and owned account for a minimum of 10 years
B. 59 1/2 and owned account for a minimum of 5 years
C. 70 1/2 and owned account for a minimum of 10 years
D. 70 1/2 and owned account for a minimum of 5 years
59 1/2 and owned account for a minimum of 5 years
Which of the following would disqualify a company's retirement plan from
receiving favorable tax treatment?
A. Contains a vesting schedule
B. Contributions are applied with no regard to income
C. Formed for the sole benefit of employees and their beneficiaries
D. It is temporary
It is temporary
When a qualified plan starts making payments to its recipient, which portion of
the distributions is taxable?
