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BIG RETIREMENT CONCEPTS (Every Day) Flashcards

1
Q

RETIREMENT: Is a SEP a qualified or non-qualified plan?

A

NQ

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2
Q

RETIREMENT: Is a SIMPLE IRA a qualified or non-qualified plan?

A

NQ

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3
Q

RETIREMENT: Is a sarsep a qualified or non-qualified plan?

A

NQ

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4
Q

RETIREMENT: Is a Thrift savings plan a qualified or non-qualified plan?

A

NQ

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5
Q

RETIREMENT: Is a 403b plan a qualified or non-qualified plan?

A

NQ

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6
Q

RETIREMENT: Is a 457 plan a qualified or non-qualified plan?

A

NQ

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7
Q

RETIREMENT: Can a non qualified plan discriminate?

A

Yes

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8
Q

RETIREMENT: Are qualified plans subject to ERISA rules?

A

yes

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9
Q

RETIREMENT: For NQ plans, when are contributions deducted by employer?

A

When the employee is taxed on them

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10
Q

RETIREMENT: For NQ plans, who are plan earnings taxable to?

A

The employer

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11
Q

RETIREMENT: For NQ plans, distributions are taxable at ___ rates.

A

ordinary

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12
Q

RETIREMENT: Is a money purchase plan a qualified or non-qualified plan?

A

Q

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13
Q

RETIREMENT: Is a target benefit a qualified or non-qualified plan?

A

Q

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14
Q

RETIREMENT: Is a profit sharing a qualified or non-qualified plan?

A

Q

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15
Q

RETIREMENT: Is a profit sharing 401K a qualified or non-qualified plan?

A

Q

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16
Q

RETIREMENT: Is a stock bonus plan a qualified or non-qualified plan?

A

Q

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17
Q

RETIREMENT: Is a ESOP a qualified or non-qualified plan?

A

Q

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18
Q

RETIREMENT: Is a Keogh a qualified or non-qualified plan?

A

Q for self employed, but they have both defined contributions and defined benefit plan options.

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19
Q

RETIREMENT: Is a defined benefit pension plan a qualified or non-qualified plan?

A

Q

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20
Q

RETIREMENT: Is a money purchase pension plan DC or DB?

A

DC

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21
Q

RETIREMENT: Is a Target benefit pension plan DC or DB?

A

DC

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22
Q

RETIREMENT: Is a stock bonus plan DC or DB?

A

DC

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23
Q

RETIREMENT: Is a profit sharing plan DC or DB?

A

DC

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24
Q

RETIREMENT: Do 412i plans have a mandatory employer contributions?

A

no

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25
RETIREMENT: In a profit sharing plan that's funded solely with employer contributions, can participants sue?
no
26
RETIREMENT: What is the annual contribution limit for defined contribution plans?
25% of covered comp
27
RETIREMENT: How are forfeitures allocated in a defined contribution plan?
Reduce plan costs or allocate to other participants
28
RETIREMENT: How are forfeitures allocated in a defined benefit plan?
Reduce plan costs
29
RETIREMENT: Are in service withdrawals permitted from a pension plan?
Pension plans may permit distributions to current employees who have attained age 59.5
30
RETIREMENT: Are contributions discretionary in a pension plan? What about a profit sharing plan?
No, Yes
31
RETIREMENT: Are in service withdrawals permitted from a profit sharing plan?
Yes, after 2 years if plan document allows
32
RETIREMENT: Can a SEP integrate with SS?
Yes
33
RETIREMENT: Can a simple integrate with SS?
No
34
RETIREMENT: Can a Money purchase plan integrate with SS?
It could be
35
RETIREMENT: Are plan loans available from SEPs Simples or Keoghs?
No
36
RETIREMENT: Do QDROs apply to SEPs SIMPLES or Keoghs?
No- IRAs
37
RETIREMENT: Are contributions to a simple mandatory?
Yes
38
RETIREMENT: Keoghs are only for who?
Sole props and partnerships
39
RETIREMENT: Are RMDs required from a SEP if employee is still working?
Yes
40
RETIREMENT: Are RMDs required from a Simple if employee is still working?
Yes
41
RETIREMENT: Are simples easy to administer?
Yes
42
RETIREMENT: Can you invest in life insurance in a SEP or SIMPLE?
No
43
RETIREMENT: What is the creditor protection for SEPs and SIMPLES?
protected by state law (can differ)
44
RETIREMENT: What is the creditor protection for qualified plans (both DB and DC)
protected per ERISA
45
RETIREMENT: Can ESOPS be integrated with social security?
No
46
RETIREMENT: Who is a simple for?
Employers with less than 100 employees
47
RETIREMENT: What are the contribution amounts for Target benefit plans?
It's based on age and compensation. It's like an age weighted profit sharing plan, but it's a pension plan.
48
RETIREMENT: What are the contribution amounts for Money purchase pension plan?
Flat percentage between 0-25%
49
RETIREMENT: Do MPPs need to be funded annually?
Yes
50
What's the difference for RMD rules between qualified plans (DB DC) and non qualified plans (SIMPLE and SEP)
``` qualified plans (DB DC) - 72 or separations from service non qualified plans (SIMPLE and SEP)- 72 ```
51
Minimum benefits and contributions for non-key employees (for top heavy plans)
DB- benefit must be 2% of compensation | DC- minimum employer contribution can be no less than 3%.
52
Which qualified plan is NOT subject to the minimum funding standard?
profit sharing plans
53
What are the 9 exceptions to "special purposes" of withdrawing from the earnings portion of a roth where there is no income tax penalty and no early withdrawal penalty if they fail to meet the 5 year holding requirement?
``` 59.5 Death Disability First time home purchase (up to 10K) Medical expenses Medical insurance premiums while unemployed substantially equal periodic payments higher education expenses birth/adoption ```
54
RETIREMENT: Is a cash balance pension plan DC or DB?
DB
55
RETIREMENT: What is the big deal about cash balance pension plans?
The employer contribution of guaranteed AND has a guaranteed minimum rate of return
56
Are hardship withdrawals allows from profit sharing plans?
No
57
Are 401K deferrals subject to FICA and FUTA
yes
58
Are SIMPLE IRA deferrals subject to FICA and FUTA
no
59
What is the salary cap for a simple IRA plan
NONE- but it DOES apply to 401k simple
60
What are SEP IRA contribution limits?
25% (not 100%) of compensation or $58,000 | * If taking the 58,000 is more than 25% of the pay, your have to do the lesser. so you'd have to do the 25% of pay
61
Per the ______ test, the plan must cover a percentage of NHCE that is at least ____% of the HCE covered
ratio percentage test | 70%
62
Per the ______ test, the average benefits for all NHCE must be at least ___% of that for the HCE
average benefits test | 70% (same as other test)
63
Permitted vesting schedule for Top heavy DB plans and all defined contribution plans
3 year cliff or 2-6 year graded
64
Permitted vesting schedule for NON top heavy DB plans and all defined benefit plans
5 year cliff or 3-7 year graded
65
What are the three main plan types that cannot integrate with ss?
esop simple 401K simple

My CFP Flashcards (21 decks)

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