Question 1 Mindy, who is 44 years old, has 5 IRA's. On January 12th, she takes a distribution of $20,000 from IRA 1. On February 20th, she rolls over the $20,000 into IRA 4. Which of the following statements is correct?

Group of answer choices Mindy owes taxes but no penalty on the $20,000. Mindy owes tax and penalty on $20,000. Mindy owes no taxes since the rollover qualifies for the 60-day rollover exception. Mindy owes a penalty but no taxes.

Question 2 Termination of Service Before Normal Retirement Age Pension Plan, you have the following withdrawal options.

Lump Sum Distribution Rollover plan assets to IRA or other qualified plan, or Leave assets in plan but the Value must be greater than $5,000 Qualified Preretirement Survivor Annuity (QPSA) Group of answer choices True False

Question 3 Potential benefits of converting an IRA to a Roth IRA are:

1. Tax reduction / tax diversification 2. Tax deferred funds transfer (Example 7.6) 3. Minimum distributions are not required from Roth IRAs (during life) 4. Estate tax reduction Group of answer choices All of the Above 1 and 3 only 3 and 4 only 1 and 2 only

Question 4 Net Unrealized Appreciation can be described and calculated as follows:

Lump sum distribution of employer securities Usually from ESOP or Stock Bonus Plan, but could be from any qualified plan Any other assets in plan may be rolled over Determination of NUA: Fair Market Value at Date of Distribution Less: Value of stock at Date of Employer Contribution Net Unrealized Appreciation Group of answer choices True False

Question 5 How is NUA stock taxed?

1. In the year of distribution of employer stock, the value at date of Employer Contribution is treated as Ordinary income. 2. In the year of distribution of employer stock, the value at date of Employer Contribution is treated as Capital Gains 3. The difference between the value of the employer contribution is considered Deferred Long-Term Capital Gain at the date of sale 4. The difference between the value of the employer contribution is considered Short-Term Capital Gain at the date of sale Group of answer choices 2 and 4 1 and 3 only 1 and 4 2 and 3

Question 6 The Maximum plan loan may not exceed The lesser of: $50,000, or of the participants vested account balance Exception, when vested account balance is <$20,000, the maximum loan is limited to the lesser of: $10,000, or The vested account balance Group of answer choices False True

Question 7 Exceptions to 10% Early Withdrawal Penalty for Distribution Prior to 59 (qualified plans) apply to all of the following except:

A. Death B. Disability C. First time home purchase D. Federal Tax Levy Group of answer choices D B A C. First time home purchases apply only to IRAs

Question 8 A person with multiple IRA's may do no more how many in-direct rollovers per year?

A. 1 B. 2 C. 3 D. 4 Group of answer choices 2 1 4 3

Question 9 When taking a withdrawals from Qualified Plans and IRA's, which of the following statements are true?

A. All withdrawals are subject to mandatory withholding of 20%. B. All withdrawals are subject to mandatory withholding of 10%. C. Qualified Plans are subject to mandatory 20% withholding but IRA's have no withholding requirements. D. IRA's are subject to mandatory 10% withholding but Qualified Plans have no withholding requirements. Group of answer choices D A C B

Question 10 A "QDRO" or Qualified Domestic Relations Order can be defined as follows:

An order, judgment, or decree set forth by a judge that details the right of a third party to receive benefits from another individuals qualified plan. These are issued under what circumstances? 1. Child Support Payments 2. Death 3. Divorce 4. Disability Group of answer choices 1 only 2 and 3 only 3 only 1 and 3 only