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15 Cards in this Set
- Front
- Back
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Qualified retirement plans allow the owner to receive ______ benefits for a policy.
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tax
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True or False:
A plan must be approved by the IRS before it can be considered a Qualified Retirement Plan. |
true
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True or False:
A plan must be permanent before it can be considered a Qualified Retirement Plan. |
true
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True or False:
A plan must be temporary or transient in nature before it can be considered a Qualified Retirement Plan. |
false
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True or False:
A qualified retirement plan is allowed to discriminate in favor of officers, stockholders or highly paid employees. |
false
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Participation in a Qualified Retirement plan (may be/may not be)geared exclusively to a prohibited group such as officers, stockholders or highly paid employees.
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may not be
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True or False:
A qualified retirement plan does not have to be formally written to be communicated to the employees. |
false
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A qualified retirement plan must be for the exclusive benefit of the ______ and their beneficiaries.
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employees
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Employer contributions to a qualified retirement plan are tax deductable and (are/are not) taxed as income to the employee.
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are not
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Employer contributions to a qualified retirement plan (are/are not) tax deductable.
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are
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Earnings in a qualified retirement plan accumulate ______ deferred.
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tax
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Lump sum distributions from a qualified retirement plan to ______ are eligible for favorable tax treatment.
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employees
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______ from a qualified retirement plan prior to age 59 1/2 impose a 10% penalty.
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Distributions
Withdrawals |
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Distributions from a qualified retirement plan prior to age ______ impose a 10% penalty.
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59 1/2
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Distributions from a qualified retirement plan prior to age 59 1/2 impose a ______ penalty.
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10%
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