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1.
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.
2.
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.
3.
To take best advantage of the tax rules, you usually should pay as much income tax as possible during your working years, so that you don't have to pay it later, during retirement.
False. You should deduct as much tax as possible during your working years, since you likely will be in a lower income bracket–and will be paying taxes at a lower rate–when you have retired.
4.
An exception to the early withdrawal tax on a retirement plan may include _______.
College tuition. Tuition and other specific higher education expenses for yourself, your spouse, children, or grandchildren are exempt from the early withdrawal tax.
5.
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.
6.
You may decide to receive your minimum required retirement distribution in monthly, quarterly, annual, or other periodic installments–the choice is up to you.
True. You decide whether to break your required minimum distribution into four, twelve, or however many payments you would like to receive during the year.