1. What is the deadline for making a contribution to a traditional IRA or a Roth IRA for 2014?
a. April 15, 2015
b. April 15, 2014
c. December 31, 2014
d. October 15, 2015

2. Which of the following statements with respect to a Keogh Plan is not accurate?
a. Self-employed individuals are eligible to be members of a Keogh Retirement Plan.
b. Contributions to Keogh Plans are limited to 15 percent of the taxpayer's net earned income or $50,000, whichever is greater.
c. "Net earned income" includes profits from the taxpayer's business.
d. Taxpayers must begin receiving distributions from a Keogh plan by the age of 70½.
e. All of the above statements are accurate.

3. Bob earns $40,000 during the current year. His employer contributes $2,000 (5 percent of Bob's salary) to a qualified retirement plan for Bob. This pension plan is what kind of plan?
a. Defined benefit plan
b. Defined contribution plan
c. Employee Stock Ownership Plan
d. Profit-sharing plan
e. None of the above
4. What is the maximum tax-deferred contribution that can be made to a Section 401(k) plan for an employee under age 50?
a. $7,500
b. $10,000
c. $15,000
d. $17,500
e. $23,000
5. Paul, age 37, participates in a Section 401(k) plan which allows employees to con tribute up to 15 percent of their salary. His annual salary is $90,000 in 2014. What is the maximum he can contribute, on a tax-deferred basis under a salary reduction agreement, to this plan?
a. $15,500
b. $20,500
c. $17,500
d. $13,500
e. None of the above
6. James' employer makes a $2,000 contribution to a qualified retirement plan for James in the current year. James is only 45 years old and does not expect to retire until age 65, 20 years from now. What is the proper tax treatment of the $2,000 contribution for James' employer?
a. The $2,000 is never deductible.
b. The $2,000 is deductible in the current year by the employer.
c. The $2,000 is deductible in the year James retires by the employer.
d. Only one-twentieth ($100) is deductible in the current year by the employer.
e. None of the above.
7. When taxpayers receive distributions from individual retirement plans, how much time is allowed to roll over the amount received into a new plan to avoid paying taxes on the distribution in the current year, assuming there are no unusual events?
a. 60 days
b. 90 days
c. 180 days
d. 1 year
e. There is no time limit
8. Tom quits his job with $120,000 in his employer's qualified retirement plan. Since he is broke, Tom instructs the plan trustee to pay him the balance in his retirement account.
How much will Tom receive when he gets his check from the retirement plan?
a. $120,000
b. $100,000
c. $96,000
d. $24,000
e. Some other amount

9. What is the maximum number of distribution rollovers a taxpayer can make dur ing a tax year from one IRA to another?
a. One
b. Two
c. Four
d. Ten
e. There is no limit

  • CreatedJuly 16, 2015
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