Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy free practice questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
From which of the following account(s) a traditional IRA can accept rollover contributions?
I. SIMPLE
II. SEP
III. 457(a)
IV. 403(b) plansCorrect
A traditional IRA can accept rollover contributions from a number of different types of accounts, including a traditional IRA, SIMPLE, SEP, 457(b), qualified plans such as 401(k), and 403(b) plans.
Incorrect
A traditional IRA can accept rollover contributions from a number of different types of accounts, including a traditional IRA, SIMPLE, SEP, 457(b), qualified plans such as 401(k), and 403(b) plans.
-
Question 2 of 10
2. Question
In both traditional and Roth IRA accounts, the distributions to participants are considered early distribution if distribution to participant is-
Correct
In both traditional and Roth IRA accounts, distributions to participants before age 59½ are considered to be early distributions
Incorrect
In both traditional and Roth IRA accounts, distributions to participants before age 59½ are considered to be early distributions
-
Question 3 of 10
3. Question
In both traditional and Roth IRA accounts, the distribution of participants that are considered as early distribution must pay an additional-
Correct
In both traditional and Roth IRA accounts, distributions to participants before age 59½ are considered to be early distributions and they must pay an additional 10% tax.
Incorrect
In both traditional and Roth IRA accounts, distributions to participants before age 59½ are considered to be early distributions and they must pay an additional 10% tax.
-
Question 4 of 10
4. Question
In a traditional IRA account, the IRS imposes certain minimum, or mandatory, distributions beginning at age –
Correct
In a traditional IRA account, the IRS imposes certain minimum, or mandatory, distributions beginning at age 70½.
Incorrect
In a traditional IRA account, the IRS imposes certain minimum, or mandatory, distributions beginning at age 70½.
-
Question 5 of 10
5. Question
Which of the following statement(s) is(are) true about a Keogh plan?
I. A Keogh plan allows self-employed individuals to save for retirement on a tax- deferred basis.
II. A Keogh is considered to be a “qualified” plan in that it is covered under Internal Revenue Code Section 401(a).
III. In order to be eligible to participate in a Keogh, you must be a small business owner, or a sole proprietor.
IV. Working for a company preclude you from being eligible for Keogh plan, so long as you also meet one of the previously mentioned criteria.Correct
A Keogh plan allows self-employed individuals to save for retirement on a tax- deferred basis. Much like a 401(k) plan, a Keogh is considered to be a “qualified” plan in that it is covered under Internal Revenue Code Section 401(a). As such, contributions to the plan made by the participant are tax-deductible. In order to be eligible to participate in a Keogh, you must be self-employed, a small business owner, or a sole proprietor. Working for a company does not preclude you from being eligible, so long as you also meet one of the previously mentioned criteria.
Incorrect
A Keogh plan allows self-employed individuals to save for retirement on a tax- deferred basis. Much like a 401(k) plan, a Keogh is considered to be a “qualified” plan in that it is covered under Internal Revenue Code Section 401(a). As such, contributions to the plan made by the participant are tax-deductible. In order to be eligible to participate in a Keogh, you must be self-employed, a small business owner, or a sole proprietor. Working for a company does not preclude you from being eligible, so long as you also meet one of the previously mentioned criteria.
-
Question 6 of 10
6. Question
Keogh plans limit contributions in a given tax year to-
Correct
Keogh plans limit contributions in a given tax year to 25 percent of your earned income, which is income less expenses arising from your self- employment activities.
Incorrect
Keogh plans limit contributions in a given tax year to 25 percent of your earned income, which is income less expenses arising from your self- employment activities.
-
Question 7 of 10
7. Question
Which of the following statement(s) is(are) true about Simplified Employee Pension Plans (SEPs)?
I. SEPs allow the employer to contribute funds to a tax-deferred account on behalf of employees.
II. Only the employer may contribute to Simplified Employee Pension Plans (SEPs).
III. The maximum contribution an employer can make to the account in any given tax year is 15 percent of an employee’s pay.
IV. A business of any size may establish a SEP and all employees are eligible to participate.Correct
Simplified Employee Pension Plans (SEPs) provide a nice alternative for small businesses and self-employed individuals who may not have the time or resources to adequately establish a traditional qualified retirement plan for employees like a 401(k). SEPs allow the employer to contribute funds to a tax-deferred account on behalf of employees. Unlike other types of plans, however, only the employer may contribute. The maximum contribution an employer can make to the account in any given tax year is 25 percent of an employee’s pay. A business of any size may establish a SEP and all employees are eligible to participate.
Incorrect
Simplified Employee Pension Plans (SEPs) provide a nice alternative for small businesses and self-employed individuals who may not have the time or resources to adequately establish a traditional qualified retirement plan for employees like a 401(k). SEPs allow the employer to contribute funds to a tax-deferred account on behalf of employees. Unlike other types of plans, however, only the employer may contribute. The maximum contribution an employer can make to the account in any given tax year is 25 percent of an employee’s pay. A business of any size may establish a SEP and all employees are eligible to participate.
-
Question 8 of 10
8. Question
Which of the following statement(s) is(are) true about a Savings Incentive Match Plan for Employees (SIMPLE)?
I. A Savings Incentive Match Plan for Employees (SIMPLE) provides the opportunity for small employers (defined as 100 employees or less) the opportunity to provide a tax-deferred retirement savings tool into which employees can elect to contribute their income and employers must make matching or other contributions.
II. The contributions into a SIMPLE are put into an Individual Retirement Account (IRA) for each employee and the IRAs follow all of the same taxation and distribution restrictions as for a traditional IRA.
III. These plans allow employees to defer receipt of their income, and therefore taxation on that income, to a later date.
IV. The contributions grow tax-deferred and distributions are taxed as ordinary income when received.Correct
A Savings Incentive Match Plan for Employees (SIMPLE) provides the opportunity for small employers (defined as 100 employees or less) the opportunity to provide a tax-deferred retirement savings tool into which employees can elect to contribute their income and employers must make matching or other contributions. The contributions into a SIMPLE are put into an Individual Retirement Account (IRA) for each employee and the IRAs follow all of the same taxation and distribution restrictions as for a traditional IRA.
Incorrect
A Savings Incentive Match Plan for Employees (SIMPLE) provides the opportunity for small employers (defined as 100 employees or less) the opportunity to provide a tax-deferred retirement savings tool into which employees can elect to contribute their income and employers must make matching or other contributions. The contributions into a SIMPLE are put into an Individual Retirement Account (IRA) for each employee and the IRAs follow all of the same taxation and distribution restrictions as for a traditional IRA.
-
Question 9 of 10
9. Question
In a Savings Incentive Match Plan for Employees (SIMPLE), employer contributions must take the form of either a dollar for dollar match up to
Correct
Employer contributions must take the form of either a dollar for dollar match up to 3% of the employee’s compensation or a nonelective contribution equal to 2% of the employee’s compensation.
Incorrect
Employer contributions must take the form of either a dollar for dollar match up to 3% of the employee’s compensation or a nonelective contribution equal to 2% of the employee’s compensation.
-
Question 10 of 10
10. Question
Which of the following statement(s) is(are) true about 401(k) plan?
I. A business of any size can choose to offer a 401(k) plan to its employees.
II. These plans allow employees to defer receipt of their income, and therefore taxation on that income, to a later date.
III. The contributions grow tax-deferred and distributions are taxed as ordinary income when received.
IV. Employers may make matching or non-elective contributions to a 401(k) plan, but such contributions are limited to the lesser of 3% of the employee’s income or $55,000.Correct
A business of any size can choose to offer a 401(k) plan to its employees. These plans allow employees to defer receipt of their income, and therefore taxation on that income, to a later date. The contributions grow tax-deferred and distributions are taxed as ordinary income when received. In 2018, employees under age 50 can contribute up to $18,500 into a 401(k) plan and employees age 50 and older can contribute up to $24,500. Employers may also make matching or nonelective contributions to a 401(k) plan, but such contributions are limited to the lesser of 25% of the employee’s income or $55,000.
Incorrect
A business of any size can choose to offer a 401(k) plan to its employees. These plans allow employees to defer receipt of their income, and therefore taxation on that income, to a later date. The contributions grow tax-deferred and distributions are taxed as ordinary income when received. In 2018, employees under age 50 can contribute up to $18,500 into a 401(k) plan and employees age 50 and older can contribute up to $24,500. Employers may also make matching or nonelective contributions to a 401(k) plan, but such contributions are limited to the lesser of 25% of the employee’s income or $55,000.