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50. Which best describes the taxability of Roth IRA distributions? a. A distribution consisting of earnings will always be subject to taxation b. Capital gain

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50. Which best describes the taxability of Roth IRA distributions? a. A distribution consisting of earnings will always be subject to taxation b. Capital gain treatment if it meets the minimum holding period. c. Tax free if it meets the holding period & qualified distribution requirements Od. Ordinary income if the taxpayer fails to make required minimum distributions e. They are only taxable if taxpayer received a deduction on the contributions Harry, age 45, works for a nonprofit organization that has adopted both a Section 403(b) and Section 401(k) plan. In 2014, he contributes $9,000 to the Section 403(b) plan in before-tax elective deferrals. How much, if any, can Harry now contribute to the Section 401(k) plan in 2020? O A.SO B. $10,500 C. $17,500 OD. $57,000 48. Which of the following types of defined contribution plans may borrow money in the name of the plan? A. A leveraged ESOP B. An age-weighted profit-sharing plan C. A tandem profit-sharing plan and a profit-sharing plan D. A profit-sharing plan with Section 401(k) provisions 47. Which of these statements is FALSE? a. An employee can contribute $19,500 to both a qualified plan & a 457 plan b. An employee can contribute $19,500 to a qualified plan and still contribute to a Roth IRA if their income does not exceed the limit c. An employee who makes over $250,000 cannot contribute to a Roth 401(k) d. A nonworking spouse can contribute to an IRA e. An employed person cannot contribute more than they earn in an IRA. 46. Which feature is NOT true regarding a section 457 plan? a. There are no early withdrawal penalties b. They cannot have Roth accounts c. The last 3 years before normal retirement age the participant may have double the ordinary plan deferrals ($36,000) d. The plan sponsor must be a nonprofit or governmental entity e. Participants recognize income when there is no longer a substantial risk of forfeiture instead of when they are actually paid

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