XCEL Chapter 10

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

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

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

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 As beneficiary, he will pay ____ taxes on any money withdrawn.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

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

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

When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable? A. Principal B. Contributions made by employee C. Contributions made by employer D. Gains

Within how many days must a rollover be completed in order to avoid being taxed as current income? A. 30 B. 60 C. 90 D. 120

Under a Traditional IRA, interest earned is taxed? A. only if withdrawn prior to age 59 1/2 B. according to the capital gains rate C. upon distribution D. during the accumulation phase

Who were Keogh plans designed to provide pension benefits for? A. Corporate officers B. Public school employees C. The self-employed D. Government employees

How are contributions made to a Roth IRA handled for tax purposes? A. Fully tax deductible B. Not tax deductible C. Partially tax deductible D. Conditionally tax deductible

All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT? A. Qualified college expenses B. First time home purchase C. Death of the participant D. Stock purchase

Which of these retirement plans do NOT qualify for a federal income tax deduction? A. SIMPLE Plan B. Traditional IRA C. Keogh Plan D. Roth IRA

Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions without a tax penalty? A. 55 B. 59 1/2 C. 62 D. 70 1/2

A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences. A. 15 B. 30 C. 60 D. 90

Which of these statements concerning Traditional IRAs is CORRECT? A. Earnings are not taxable when withdrawn B. Earnings are taxable when withdrawn C. Contributions are never tax-deductible D. Contributions are always made by the employer

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