All of the following statements about Roth IRA plans are false EXCEPT: [D] The qualified distributions of a Roth IRA plan are not taxable. Which of the following is TRUE concerning an Individual Retirement Account for the husband and wife? High salaried employees near retirement benefit most.

A Coverdell education savings account (also known as an education savings account, a Coverdell ESA, a Coverdell account, or just an ESA, and formerly known as an education individual retirement account), is a tax-advantaged investment account in the U.S. designed to encourage savings to cover future education expenses (elementary, secondary, or college), such as tuition, books, and uniforms (for the same year as the distribution). This benefit applies not only to qualified higher education expenses, but also to qualified elementary and secondary education expenses.

It does not compel an employer to have a retirement plan or to provide minimum benefits in a plan, 1. contributions may be made annually up to specific limits, retirement plan where benefits received by employees are computed using a predetermined formula. As BOM, one of your RRs comes to you with a letter to a client about a 529 education savings plan account.

Individual Retirement Account - A personal qualified retirement account through which eligible individuals accumulate tax-deferred income up to a certain amount each year, depending on the person's tax bracket. Their adjusted gross income is $200,000. 529 Plans also allow the …

Which of the following represents the maximum age withdrawals must start from an Individual Retirement Account before a penalty is assessed? A single individual who is not an active participant in a qualified retirement plan, earned $28,000. The features of a Coverdell Education Savings Account include all of the following EXCEPT. A Coverdell Education Savings Account is a tax-deferred trust account created by the U.S. government to assist families in funding educational expenses for … A Coverdell education savings account (Coverdell ESA) is a trust or custodial account set up in the United States solely for paying qualified education expenses for the designated beneficiary of the account. A Coverdell Education Savings Account (also known as an Education Savings Account, a Coverdell ESA, a Coverdell Account, or just an ESA, and formerly known as an education individual retirement account), is a tax-advantaged investment account in the United States designed to encourage savings to cover future education, [C] Your RR needs to state that withdrawals from 529 plans are tax-free when used for qualified education costs. [C] High salaried employees with only a few years to retirement benefit the most. All of the following are true regarding IRA contributions EXCEPT: [C] If an extension for a tax return is obtained, the IRA contribution may be delayed until the date the tax return is filed. A customer contributes the maximum $2,000 to an educational savings account which can be used for elementary, secondary and higher education costs. [C] 529 Savings Plan The best choice would be a 529 Savings Plan since these accounts are permitted to invest in stocks and bonds, and higher contributions would be allowed. Find GCSE resources for every subject. The client will have to pay. 529 Education Savings Plan accounts have all of the following features EXCEPT: [B] Annual contributions to the account can total no more than $2,000. Regarding tax-qualified, profit-sharing plans, which response below is NOT TRUE? [B] In order for a company to make profit-sharing contributions, actual company profits are not a requirement. Which of the following would be the best choice for a married couple with a high income level wishing to invest money in the stock market for their child's education?

§ 530). Contributions may be made annually up to specified limits, a tax-deferred retirement plan offered to employees by their employer, allow anyone to establish an account in the name of a beneficiary and "lock in" the cost of a specific number of academic periods or units at current prices for use in the future by the beneficiary, may begin at age 59.5 and are mandatory by 70.5, - Allows unincorporated business owners to participate in the retirement plan - as an employee, distributions from one retirement plan to another retirement plan or account, The Employee Retirement Income Security Act (ERISA), provides for minimum standards for established private sector retirement plans: disclosure, standards, accountability, remedies, guarantees. All of the following are characteristics of 401(k) plans EXCEPT, [C] A profit sharing contribution formula may not be included in the plan. NEW!

The client's child is expected to graduate from high school in the near future.

What else should the RR disclose in relation to this plan? [B] Neither the husband nor the wife is allowed a tax deduction for an IRA deposit. All of the following statements about a Spousal IRA are TRUE EXCEPT: [D] Rollovers are allowed at any time between the spouses' accounts. All of the following statements about 401(k) plans are TRUE EXCEPT: [A] They are a type of defined benefit plan.

In 2019, a husband and wife are both active participants in an employer's qualified retirement plan.

A 45-year-old customer leaves his employer and takes payout on their 401(k) Plan assets with the intent to roll the plan into a Traditional IRA. All of the following statements about traditional IRAs are TRUE EXCEPT: [D] An individual may contribute securities into his/her IRA account. [C] both a 10% penalty on the amount paid out and ordinary income tax on the amount paid out. Coverdell - Education Savings Accounts Contribution Limits, - must be in cash and are limited to $2000 per year per beneficiary, Roth IRAs - Distributions - Qualified Distributions, When a Roth IRA distribution is Qualified, there are no tax consequences on the distribution, are tax exempt accounts for the qualified education expenses of a designated beneficiary to pay for education expenses, a retirement plan where contributions can be made by the employer and/or the employees into individual accounts, established and maintained by States and allow individuals to set up plans to pay for student's qualified higher education expenses with tax-free withdrawals for qualified educational expenses, - another way for individuals to save for retirement. With these features in mind, this account is most likely what type? It is found at Section 530 of the Internal Revenue Code (26 U.S.C. Traditional IRAs - Contribution Conditions, 1.

Coverdell ESA…

Which of the following statements would NOT be true with regard to 529 Education Savings plans? A Keogh Plan may be referred to as all of the following EXCEPT: When an RR is going to recommend a 529 Plan to a client for their child's future education all of the following are items that should be disclosed to the client except: [A] The costs of several plans vs. the one being recommended.

You have a client who wants to save primarily for her child's college education, but also for private elementary school and high school expenses. The maximum tax-deductible contribution that can be made to an IRA is? The client fails to do so within the required time period. [C] The maximum annual contribution to the account is $2,000. Which of the following plans would be most suitable for the customer? All of the following individuals are entitled to participate in a Keogh Plan EXCEPT: [D] A corporate executive that has income from his corporate employer including incentive stock options.

Which of the following is true about a defined benefit plan?