jmthyfzgfvs Flashcards
Which of the following plans is a nonqualified deferred compensation plan established by a private, tax- exempt employer, or a state or local government?
A)
SIMPLE
B)
Section 457 plan
C)
TSA
D)
SEP plan
b
Section 457 plans are nonqualified deferred compensation plans that can be established by private, tax-exempt employers (other than churches) and state and local governments.
LO 4.3.2
George has been participating in his employer’s SIMPLE IRA for one year. He is 45 years old. If he withdraws $1,000 from this plan this year and the withdrawal is not covered by an exception to the penalty tax on premature withdrawals, he will owe a penalty tax of
A)
$0.
B)
$100.
C)
$250.
D)
$500.
250
George will incur a $250 penalty tax on the $1,000 withdrawal. Premature withdrawals made from a SIMPLE IRA within two years of initial participation are subject to a penalty tax of 25%.
LO 4.2.1
Which of the following statements is CORRECT regarding Section 403(b) plans?
It is possible that a Section 403(b) participant age 50 or older with 15 years of service can contribute $33,000 in 2023.
If an employee is eligible for both the age-50-and-older catch-up and the special catch-up, catch-up deferrals will first be considered special catch-up deferrals (until the lifetime maximum is exhausted) before applying a catch-up deferral as an age-50-and-older catch-up deferral.
A)
Both I and II
B)
Neither I nor II
C)
I only
D)
II only
both
