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1.
If you choose to annually recalculate your life expectancy, you generally will receive larger annuity payments.
False. If you choose to recalculate annually, you generally will receive smaller payments, because when you live another year, your life expectancy increases.
2.
If your retirement plan is an IRA, you may delay taking required minimum distributions until you retire.
False. If your plan is an IRA, you must begin taking minimum distributions by April 1 following the year you attain age 73, whether or not you are still employed.
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.
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.
All of the following are retirement plans except the _______.
None of the above. Retirement plans include 401(k)s, Keoghs, and individual retirement accounts (IRAs), among others.
6.
Internal Revenue Code rules _______.
Help you save a nest egg during your primary working years. They enable this by deferring taxes on your contributions to a retirement plan.