FinanceRetirement Plan Regulations
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Retirement Plan Regulations Quiz

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#1

Which government agency oversees retirement plans in the United States?

IRS
Explanation

IRS oversees retirement plans.

#2

What is the main purpose of ERISA (Employee Retirement Income Security Act)?

To regulate retirement plans offered by private employers
Explanation

ERISA regulates retirement plans offered by private employers.

#3

Which of the following retirement plans is specifically designed for employees of public education institutions and certain non-profit organizations?

403(b)
Explanation

403(b) is for employees of public education institutions and certain non-profit organizations.

#4

What is the penalty for excess contributions to a retirement account?

10% penalty on the excess amount
Explanation

Penalty for excess contributions is 10% on the excess amount.

#5

What is the age at which individuals must begin taking required minimum distributions (RMDs) from their retirement accounts?

70½
Explanation

Individuals must begin taking RMDs at age 70½.

#6

What is the maximum annual contribution limit for a 401(k) plan in 2024?

$19,500
Explanation

Maximum contribution limit for 401(k) in 2024 is $19,500.

#7

Which of the following retirement plans allows for catch-up contributions for individuals aged 50 and older?

401(k)
Explanation

401(k) allows catch-up contributions for individuals aged 50 and older.

#8

At what age can individuals begin to make penalty-free withdrawals from their retirement accounts?

59½
Explanation

Individuals can make penalty-free withdrawals at age 59½.

#9

Which of the following retirement plans allows for tax-free withdrawals of contributions and earnings if certain conditions are met?

Roth IRA
Explanation

Roth IRA allows tax-free withdrawals if conditions are met.

#10

What is the maximum annual contribution limit for an IRA (Individual Retirement Account) in 2024?

$6,000
Explanation

Maximum contribution limit for IRA in 2024 is $6,000.

#11

Which of the following retirement plans is NOT subject to required minimum distributions (RMDs) during the account holder's lifetime?

Roth IRA
Explanation

Roth IRA is not subject to RMDs during the account holder's lifetime.

#12

What is the penalty for early withdrawal from a traditional IRA before the age of 59½?

10%
Explanation

Penalty for early withdrawal from traditional IRA is 10%.

#13

Which of the following retirement plans is designed specifically for self-employed individuals or small business owners?

SEP IRA
Explanation

SEP IRA is for self-employed individuals or small business owners.

#14

What is the primary advantage of a Roth IRA over a traditional IRA?

Tax-free withdrawals in retirement
Explanation

Primary advantage of Roth IRA is tax-free withdrawals in retirement.

#15

What is the penalty for failing to take required minimum distributions (RMDs) from a retirement account?

50% of the required distribution amount
Explanation

Penalty for not taking RMDs is 50% of the required amount.

#16

What is the penalty for failing to roll over a distribution from a retirement plan into another eligible retirement plan within 60 days?

20% penalty
Explanation

Penalty for failing to roll over distribution within 60 days is 20%.

#17

Under what circumstance can an individual make penalty-free withdrawals from a retirement account before age 59½?

All of the above
Explanation

Various circumstances allow penalty-free withdrawals before age 59½.

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