Richard just turned 45 years old. He wants to rollover his current 401(K) plan into a traditional IRA or Roth IRA. Nevertheless, he is not sure about the tax consequences and implications of the rollover.Which one of the following statements is correct? a) A rollover into any IRA is not allowed more than once a year. b) A rollover from a retirement plan to any IRA is always a tax-free transfer.

QUESTION 37:

Several years ago, 25-year-old Candy and her 22-year-old sister opened a joint bank account. Shortly afterward, Candy withdrew all her funds from the account. Although Candys name is listed first on the account, and the bank reported $180 of interest on a 1099-INT in her name, the interest gained really belongs to Candys sister. In this case, what is the association that Candy has with the bank account?

a) Trustee. b) Fiduciary. c) Nominee. d) Custodian. c) To be tax-free, a rollover into a traditional IRA must be between a trustee and another trustee. d) Richard may make a tax-free rollover within 60 days of the distribution from his retirement account- if the rollover is made into a traditional IRA.