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1.
Going over the contribution limit in your retirement account will lead to a _______ tax penalty.
6 percent. This penalty is meant to discourage overcontributing.
2.
Which of the following would most likely lower your taxes owed when you take retirement plan distributions?
Taking distributions in a year when you have a lot of tax deductions. Having deductions can lower your tax burden, so this may be a good time to take your distributions.
3.
Retirement plan balances left to a spouse are subject to a maximum 75 percent estate tax.
False. Retirement plan balances left to a spouse qualify for a tax-free transfer.
4.
To lower your minimum required retirement distribution, you can use only the joint life expectancy of you and your spouse.
True. You can use only the joint life expectancy table for you and a spouse who is 10 or more years younger as beneficiary to lower your minimum required distribution.
5.
At what age will your earned income stop reducing your Social Security benefits?
Your full retirement age. Once you reach this age, your earned income will stop reducing your benefits.