Question
QUESTION 16 Mike participates in a Section 401(k) plan maintained by his employer. His vested account balance is $18,000, and he has not taken any
QUESTION 16
Mike participates in a Section 401(k) plan maintained by his employer. His vested account balance is $18,000, and he has not taken any plan loans. What is the maximum loan amount Mike can take from his Section 401(k) plan?
A. | $9,000 | |
B. | $18,000 | |
C. | $10,000 | |
D. | $0 |
QUESTION 17
Anastasia expects to begin distributions from her IRA at age 75 since she retired at age 74. Which of the following statements would NOT be accurate as implications of a distribution made at that time?
A. | Because Anastasia just retired, there will not be any distribution penalty on amounts that were not distributed in the past. | |
B. | Assuming Anastasia is married and her husband is her beneficiary, if Anastasia dies after beginning distributions, remaining benefits may be paid over her husbands life expectancy, beginning in the year following the year of her death, determined by reentering the RMD Single Life Table each year with his attained age for that year. | |
C. | If Anastasia dies on or after the required beginning date without a designated beneficiary, the required minimum distribution for the year of death is determined by entering the required minimum distribution (RMD) Single Life Table at her attained age in the year of death. Life expectancy is reduced by one year for each subsequent year. | |
D. | Recalculation of life expectancy is automatic when using the Uniform Lifetime Table because the table is reentered each year at the attained age for that year. |
QUESTION 18
Which of the following statements regarding a simplified employee pension (SEP) plan are CORRECT?
Distributions used to fund college education costs for the participant's child are not subject to the 10% early withdrawal penalty.
Distributions from a SEP plan will not be subject to the 10% early withdrawal penalty if the participant leaves the sponsoring company after attaining age 55.
A. | Both I and II | |
B. | Neither I nor II | |
C. | II only | |
D. | I only |
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