All That Saving!
What is the difference in contribution between Roth and Traditional plans?
What is tax-deferred vs. income tax-free
At the age of 60 you begin to take income from Johnny Roth IRA, what income taxes will Johnny have to play (state, federal, or both)?
What is neither
This plan is self-directed, and is the most commonly used employer sponsored retirement plan.
What is a 401(K) plan
What are all of the numbered retirement plans and why are they referred by there numbers?
What is 401(k), 403(b), 457(b). Because it refers to the section of the internal revenue code that allows them to be possible.
What is the age requirement to be able to withdrawal from any qualified private retirement plans?
What is 59 1/2
In these type of plans the contribution rate is fixed but the actual retirement benefit is variable.
What is defined-contribution plans
Johnny has worked for a company in Massachusetts that offered a profit-sharing retirement plan. Johnny retired at age 55, and then tragedy strikes Johnny's family. Johnny need extra funds, so Johnny look to the profit-sharing plan. What percentage will Johnny be taxed at for early withdrawal?
What is a 10% tax
This plan is designed for employees of public educational systems and tax-exempt organizations.
What is a 403(b) plan
What is the maximum Roth IRA contributions, and what is the maximum catch up contribution that can be made in the year 2022?
What is $6,000 and $1,000
What is the penalty percentage of not starting the distribution of funds from a private retirement plan by age 70 1/2?
What is 50%
In these type of plans the contributions will vary depending on the amount needed to fund the desired benefit.
What is defined-benefit plan
Johnny worked and contributed to a 401K all in New York. At age 60, when Johnny retired, he move to Texas and begin to take income from your 401k. What income tax will be paid (state, federal, or both)?
What is only federal
This plans employer contributions are typically based on the firm's profits.
What is a profit-sharing plan
What is the maximum contribution that can be made in a defined-contribution plan in the year 2022, per participant?
What is $61,000
What is the maximum annual compensation for a defined-benefit plan?
What is $245,000
Within the fundamentals of private retirement plans distributions must start not later than what date and age?
What is April 1st of the calendar year following when the individual attains the age of 70 1/2
Johnny is the beneficiary of his fathers traditional IRA. He lives in New York, and Johnny live in California. Which state income tax rate will Johnny pay at withdrawal?
What is California's state income tax rate
This plan is a retirement plan in which the employer contributes to an IRA established for each eligible employee.
What is a SEP plan
What is another name for a section 403(b) plan?
What is tax-sheltered annuity (TSA)
In terms of elected deferrals retirement plans, what is the catch up age, catch up age contribution amount, and contribution limit for the year 2022?
What is 50+ years old, $6,500 and $20,500
In terms of vesting, what are the two minimum vesting standards for an employee under a qualified defined-benefit plan?
What is five-year cliff vesting and three- to seven-year graded vesting
Johnny is the beneficiary of his mothers traditional IRA. She lived in Wisconsin, and he live in Florida. What income taxes will be paid at withdrawal?
What is only federal income tax
This plan is limited to employers that employ 100 or fewer employees and do not maintain another qualified plan.
What is a Simple IRA
What are the three types of plans offered by a funding agency?
What is a trust-fund plan, an insured plan, and a split-funded plan
In a SEP IRA, what is the maximum percentage of compensation into the plan (if self employed) and what is the contribution limit? As of 2022.
What is 25% and $61,000