1)What is the first year in which a single taxpayer, age 48 in 2016, could receive a qualified distribution from a Roth IRA, if he made a $5,000 contribution to the Roth IRA on April 1, 2016, for the tax year 2015?

Select one:

a.2019

b.2018

c.2028

d.2020

2) Jim, age 42, files a federal income tax return for 2020 as a single person. His adjusted gross income is $118,000, and he does not have a retirement plan available at work. Now assume that Jim has a traditional IRA with deductible and non-deductible contributions. What can you advise Jim about the tax consequences of converting his entire traditional IRA into a Roth IRA?

Select one:

a.Jim will have to pay income tax at the regular rate on the amount that he converts for the tax year in which he makes the conversion.

b.Jim has the choice of paying the tax due on the conversion amount at the time of the conversion or ratably over a four-year period.

c.He cannot convert his traditional IRA.

d.He must pay ordinary income tax on the entire amount minus the post-tax contributions made to his traditional IRA.

3) Which of the following statements concerning excess contributions to an IRA made this year is (are) correct?

(1)The excess is subject to a 6% excise tax.

(2) The taxpayer may correct the excess contribution by making withdrawals, but the investment income earned while the excess is invested is included in the taxpayers gross income.

(3) The penalty tax is levied each year until the excess contribution is corrected.

Select one:

a.(1) only

b.(1) and (2) only

c.(1) and (3) only

d.(2) and (3) only

e.(1), (2), and (3)

4) The government has prescribed which of the following requirements for SIMPLE plans?

Select one:

a.Either 3-year cliff vesting or 2-to 6-year graded vesting

b.Only life insurance and annuities as funding instruments

c.Only participants who are fully vested may borrow.

d.Only employers with 100 or fewer employees are eligible for a SIMPLE.

e.Only employers with an existing qualified plan are eligible.

5)A small employer which has an existing SEP plan wishes to add some form of employee contribution feature to its existing SEP contributions. What options can you recommend?

(1) It can easily add 401(k)-like features by modifying its SEP into a salary reduction SEP.

(2) A SIMPLE IRA plan will serve both needs. Employees can either keep their existing SEP accounts separate or roll them over into the new accounts after 2 years of participation in the SIMPLE plan.

(3) A SIMPLE 401(k) is preferred over a SIMPLE IRA in order to allow for employee contributions.

(4) Either a SIMPLE IRA, a SIMPLE 401(k), or a combination of a regular 401(k) and profit-sharing plan will support both types of employee and employer contributions.

Select one:

a.(1), (2), (3), and (4)

b.(2) and (4) only

c.(4) only

d.(2), (3,) and (4) only