Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
Retirement plan distributions are added to your overall taxable income.
True. The IRS treats them as taxable income.
3.
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.
4.
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.
5.
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.