Which of the following plans is not permitted to offer a Roth account as part of the plan? a. Private 457(b) plan.b. Governmental 457(b) plan.c. 403(b) plan.d. 401(k) plan
Option a. Private 457(b) plan
We know from our understanding that only Governmental 457(b) plan, 403(b) plan, 401(k) plan are permitted to offer designated Roth accounts
Which of the following plans is not permitted to offer a Roth account as part of...
Chapter 10 - Question 10 : Please give an explain on these items. Thank you If an employee earning $60,000 had access to multiple plans, which combination would allow for the largest contribution, including both employer and employee contributions? 401(k) plan and profit sharing plan. Governmental 457(b) plan and a 403(b) plan. Profit sharing plan and SEP. 401(k) plan and a 403(b) plan.
QUESTION 27 Which of the following is designed for employees of tax-exempt employers and does not allow employer contributions? a. 403(b) plan. b. 401(k) plan. c. 457 plan. d. SIMPLE IRA.
9. Which of the following statements concerning Roth IRAs is correct? a. in the event of distributions from a Roth IRA, the earnings are deemed withdraw first. b. A distribution from a Roth IRA must include both earnings and contributions c. if the entire Roth IRA is distributed within 5r years to buy a car, only the earnings are subject to income tax, but the entire amount may be subject to penalty. d. if distributions are made within 5 years...
Which of the following statements comparing a SIMPLE IRA with a 401(k) plan is correct? (A) The same amount of salary deferral is permitted for employees in both plans. (B) The participants are able to withdraw their money more easily from a 401(k) than from a SIMPLE IRA. (C) The employer may make matching and nonelective contributions with both plans. (D) If rank-and-file employees did not participate, a 401(k) plan would generally not work, but a SIMPLE IRA would still work.
Hi, Please help me to solve these questions with detail explanation . Thanks Question 4 Dustin, who is 48 years old, works for Pinnacle Inc., with a salary of $300,000, a car allowance, and a very nice expense account. Pinnacle is a Fortune 1,000 company that sponsors a defined benefit plan that pays 2 percent times years of participation times the average of the three final years of compensation. In addition, Pinnacle sponsors a 401(k) / profit sharing plan and...
4.How are distributions from qualified plans treated? a. Retirees must report distributions received as income. b. Retirees must report distributions received as income only if they are less than 59-1/2 years old. c. Retirees must report distributions received as income only if they are more than 70-1/2 years old. d. Retireesmust report distributions received as income only if employer contributions to the plan are greater than the allowable amounts. 6. Roscoe is 54, and is considering requesting a distribution this year from his employer’s...
1)Which of the following is an important difference between qualified and nonqualified retirement plans? a. Qualified plans provide benefits for retirees who were high-performing employees, while nonqualified plans provide benefits for retirees whose performance did not meet minimum job expectations. b. Employer contributions are deductible when paid to a qualified plan, but deductible when paid to the employee under a nonqualified plan. c. Employer contributions to nonqualified plans are subject to dollar limits, but contributions to qualified plans are unlimited. d. Earnings of...
Keisha (50 years of age) is considering whether to participate in her company's Roth 401(k) or traditional 401(k). This year, she plans to invest either $4,000 in a Roth 401(k) or $5,000 in a traditional 401(k). Keisha plans on leaving the contribution in the retirement account for 20 years when she will receive a distribution of the entire balance in the account. Her employer does not have a matching program for employee contributions to retirement accounts. Assume Keisha can earn...
Chad Boudreaux is a 58-year riverboat captain. He grew up in New Orleans and has worked on the Mississippi River his entire life. He works for a private company in New Orleans called Crescent River Pilots Inc. (CRP) and is married to Patricia, who is 35 years old. They have a seven-year-old son, named River. CRP sponsors a 401(k) plan that offers a Roth account and a separate ESOP. Chad has the following retirement plan accounts: Account Description Current FMV...
If an employer maintains a SIMPLE plan, which of the following plans can it also have in operation at the same time? a) Qualified Plan b) 403(b) Plan c) SEP d) None of the above are correct