Retirement plans

by | Jul 27, 2021 | Homework Help

1. Most retirement plans mandate that individuals be penalized for withdrawing funds prior to 59 ½ years of age. (true/False).

2. A SIMPLE IRA is available to employers with 95 employees who earned at least $5,000 in the prior year. (True/false).

3. The formula for determining the nontaxable portion of each year’s payment of an annuity stream is commonly referred to as the a. exclusion ratio b. safe harbor percentage c. inclusion ratio d. expected return liability

4. If a trust has been designated as the beneficiary of a retirement plan or account, then the beneficiaries of the trust a. may not necessarily be identifiable from the trust document b. should take steps to have the trust changed from irrevocable to revocable c. should take steps to see that the trust administrator does not designate a charity to be a beneficiary d. can qualify as “designated beneficiaries”

5.  The premature distribution penalty exception for substantially equal periodic payments (SEPP) a. allows for alteration of distribution amounts on account of disability b. prescribes that payments must be made at least annually for five successive years, if payments begin at age 50 c. is erased if distribution amounts in any one year exceed $20,000. d. is valid only when tax is payable within the first eighteen months from the date of modification…

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