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1.
Your minimum required retirement distribution will be higher if you use the joint life expectancy of you and a younger spousal beneficiary in the calculation.
False. Using the joint life expectancy of you and a spousal beneficiary who is 10 or more years younger lowers your minimum required retirement distribution.
2.
During retirement, withdrawing too little from your retirement account will lead to a _______ tax penalty.
25 percent. Withdrawing too little from your retirement account will lead to a 25 percent tax penalty on the difference between the required minimum distribution and the amount you actually withdrew.
3.
If your income is below $32,000, your Social Security benefits will not be taxed.
False. It depends on your filing status. If your income is above $25,000 (single) and $32,000 (joint), your Social Security benefits can be taxed at 50 to 85 percent.
4.
Which of the following is not true about a joint annuity?
It pays any estate taxes on the taxable amount. It is recommended that an insurance policy be used in conjunction with the annuity to cover taxes.
5.
Retirement plan distributions are added to your overall taxable income.