40. Which is FALSE? a. The nondiscrimination tests between tax-advantaged & qualified plans are essentially identical b. Defined contribution plans and tax-advantaged plans both require the employer to pay the employee's account balance at retirement c. The distribution rules are essentially the same between tax-advantaged & qualified plans d. Nonqualified plans generally discriminate in favor of highly compensated employees e. Roth IRA's and Roth 401(k) plans each have 5 year holding period requirements 35. Which is NOT true of a conversion from a Traditional to a Roth? a. The same adjusted gross income limits apply to a conversion like contributions b. It is treated as a taxable distribution c. The same tax rules apply to a conversion in 401(k)s & IRA's d. You can do a partial conversion You should pay the taxes due from money outside the IRA or Qualified Plan 32. Which is NOT an exception to the Traditional IRA premature distribution penalty? a. Higher education costs b. Total and permanent disability c. First time home buyer up to $10,000 d. Substantially equal payments for 5 years or attainment of age 59 1/2, whichever is shorter e. Medical expenses exceeding 10% of participant's adjusted gross income (AGI) 30. Which is TRUE of a beneficiary of an Inherited IRA? a. You may make future contributions into an Inherited IRA b. You can always roll this IRA into your existing IRA c. You must begin distributions in the year of owner's death based on the deceased person's age. d. You must liquidate the IRA upon settlement of the deceased's estate e. You nomrally must withdraw the funds within 10 years of the original IRA owner's death unless you are a spouse or have a birth date within 10 years of the decedent, special needs, or are a minor child