traditional ira ?$ 0 .$ 250 .$ 1 B u s i n e s s F i n a n c e

traditional ira ?$ 0 .$ 250 .$ 1 B u s i n e s s F i n a n c e

1.Which of the following are correct regarding 403(b) plans?

1. Employee elective deferrals may be contributed to a Roth account within a 403(b) plan.

2. 403(b) plans must comply with the ADP and ACP tests.

3. An employee of the New Orleans Museum of Art (a not for profit) could defer more than $26,000 in to the Museum’s 403(b) plan.

1 only.

1 and 2.

1 and 3.

2 and 3.

2. Dr. Durr has worked as a professor at Top-Notch University for the last 30 years. He has never deferred any money into his 457(b) plan. He has maxed out his 403(b) plan. He will attain her normal retirement age under the 457(b) plan in this year. How much can David contribute to his 457(b) plan for this year?





3. What is the earliest age that an IRA catch-up contributions can be made?





4. If an employee earning $60,000 had access to multiple plans, which combination would allow for the largest contribution, including both employer and employee contributions?

401(k) plan and profit sharing plan.

Governmental 457(b) plan and a 403(b) plan.

Profit sharing plan and SEP.

401(k) plan and a 403(b) plan.

5. Which of the following types of income is considered earned income for a traditional IRA contribution?


Rental income.

Capital gains.

Partnership income from a law firm.

6.Seth and Morgan were just married, but Seth does not work. They are both 25 years old. Morgan supports Seth with funds from her trust fund, investment income of $12,000, and her part-time earnings of $7,000 this year. If Morgan contributes $5,500 to her Roth IRA, how much can Seth contribute to his traditional IRA?





7. Which of the following plans is not permitted to offer a Roth account as part of the plan?

Private 457(b) plan.

Governmental 457(b) plan.

403(b) plan.

401(k) plan.

8. Dr. Durr contributes $85,000 to one of his university “retirement type” plans. He is not sure of the differences between the plans. What type of plan did he contribute the funds to?

Tax sheltered annuity.

Public 457 plan.

Private 457 plan.

Ineligible 457 plan.

9. Charles, a single 29-year-old CEO of a technology start-up company, earns a $2 million base salary with a $400,000 bonus. His company does not offer any retirement plans. What is the maximum deductible IRA contribution Charles can make during 2020?





10. All the following types of income are considered earned income for a traditional IRA contribution except:

Earned income.

W-2 income.

Self-employment income.

Gambling income for a non-professional gamble

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