Home
>
Retirement
>
Intermediate
Retirement Intermediate:
Special Types of Individual Retirement Accounts
Test your knowledge
Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Employees whose retirement benefits are covered by union contracts may not participate in SIMPLE or SEP-IRAs.
Choose wisely. There is only one correct answer.
True
False
True. This rule prevents double retirement coverage.
2.
SIMPLE IRAs may be funded by _______.
Choose wisely. There is only one correct answer.
Employee salary reduction contributions
Employer contributions
Both employer contributions and employee salary reduction contributions
Both employer contributions and employee salary reduction contributions. However, an employee may elect not to make a contribution.
3.
Contributions that employers make to employees' SIMPLE IRAs are called ________ contributions.
Choose wisely. There is only one correct answer.
SIMPLE
Salary reduction
Matching
Matching. To an extent, these must match the contributions made by employees.
4.
All of the following are IRS maximum guidelines for SEP-IRA eligibility except that _______.
Choose wisely. There is only one correct answer.
During the immediately preceding five years, the employees must have worked for the company for three years
Employees must receive $5,000 or more in compensation for that tax year
Employees must be at least age 21
Employees must receive $5,000 or more in compensation for that tax year. The rule is, the employees must receive $800 or more.
5.
Employers are required to contribute to their employees' SEP-IRAs.
Choose wisely. There is only one correct answer.
True
False
False. Employer contributions are voluntary.
Submit
DONE