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1.
You may face tax penalties if you fail to take retirement plan distributions after your required retirement age.
True. If you fail to take money out of your plan after you have reached your required retirement age, you will face certain tax penalties.
2.
The amount of tax on an early withdrawal from a retirement plan is _______.
10 percent of the amount withdrawn. The tax penalty equals 10 percent of the amount withdrawn.
3.
You may take a joint life annuity with your cousin as a retirement distribution option.
True. You may take a joint life annuity option with anyone as long as your spouse (if alive) approves.
4.
Which annuity method pays you for a fixed period only?
Term certain. As their name implies, term certain annuities pay for only a specific time period.
5.
In the United States, most retirement plans are authorized by _______.
The Internal Revenue Code. The Internal Revenue Code specifies the allowable benefits and tax liabilities of individual and qualified employer retirement plans.
6.
Your deadline for beginning to make minimum withdrawals from your retirement plan may be ______.
April 1 following the year you turn 73. If your plan is an employer plan, you have one of two possibilities: your deadline is April 1 of the year following the later of either the year you attain age 73 or the year you retire.