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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.
Distributions you receive from ordinary qualified retirement and IRA accounts are taxed at what rate upon withdrawal?
Your regular income tax rate. Distributions are taxed at your regular income tax rate -- a fact that may call for some tax planning on your part.
3.
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.
4.
Going over the contribution limit in your retirement account will lead to a _______ tax penalty.
6 percent. This penalty is meant to discourage overcontributing.
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.