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1.
A defined benefit plan automatically builds the minimum required distribution into its payout options.
True. Defined benefit plans offer annuity payments that meet your minimum required distributions.
2.
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.
3.
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.
4.
Susan has an annuity that will make payments for 25 years. She has a _______.
Term certain annuity. A term certain annuity makes payments for a specific number of years.
5.
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.
6.
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.