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15 Cards in this Set

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