FREE AND STUDY GAMES ABOUT ACCT 4040 EXAM

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FREE AND STUDY GAMES ABOUT ACCT 4040 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -31 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Which pf the following statements concerning individual 401ks is false?

Answer:

individual 401ks are available only to self-employed taxpayers with 100 or fewer employees

Question 2: How is a traditional 401k account similar to a Roth 401k account?

Answer:

distributions from a traditional 401k account and a Roth 401k account are both subject to minimum distribution penalties Question 3: Which of the following statements is true regarding employer-provided qualified retirement plans?

Answer:

they are generally referred to as defined benefit plans or defined contribution plans Question 4: Which of the following statements regarding defined benefit plans is false?`

Answer:

employees bear the investment risks of the plan

Question 5: Which of the following statements regarding Roth IRA distributions is true?

Answer:

a Roth IRA does not have a minimum distribution requirement Question 6: Shauna received a distribution from her 401k account this year. In which of the following situations will Shauna be subject to an early distribution penalty?

Answer:

Shauna is 68 but not yet retired when she receives the distribution Question 7: When employees contribute to a Roth 401k account they _____ allowed to deduct the contributions and they ______ taxed on the distributions from the plan.

Answer:

are not allowed....are not taxed

Question 8: Which of the following statements regarding IRAs is false?

Answer:

taxpayers who have made nondeductible contributions to a traditional IRA are taxed on the full proceeds when they receive distributions from the IRA

Question 9: Which of the following describes a defined contribution plan?

Answer:

employers and employees generally may contribute to the plan Question 10: Which of the following statements is true regarding taxpayers receiving distributions from traditional defined contribution plans?

Answer:

taxpayers are not allowed to deduct either early distribution penalties or minimum distribution penalties

Question 11: Which of the following is true concerning SEP IRAs"?

Answer:

taxpayers with a SEP IRA must contribute for their employees Question 12: Which of the following statements regarding vesting in a defined benefit plan is correct?

Answer:

when an employees benefits vest, she is legally entitled too receive the benefits

Question 13: Which of the following is a true statement regarding saving for retirement?

Answer:

none of these is a true statements Question 14: Which of the following describing a defined contribution plan is false?

Answer:

employers bear investment risk relating to the plan

Question 15: Which of the following statements regarding a Roth IRA is false?

Answer:

employers can make contributions to Roth accounts on behalf of their employees Question 16: In general, which of the following statements regarding self-employed retirement accounts is true?

Answer:

individual 401ks have higher contribution limits than SEP IRAs Question 17: Which of the following statements regarding traditional IRASs is true?

Answer:

a single taxpayer with no earned income is not allowed to deduct contributions to a traditional IRA Question 18: Which of the following best describes distributions from a defined benefit plan?

Answer:

distributions from defined benefit plans are fully taxable as ordinary income Question 19: Which of the following statements is true regarding distributions from Roth 401k accounts?

Answer:

a taxpayer receiving a non qualified distribution from a Roth 401k account may be taxed on a portion but not all of the distribution

Question 20: Which of the following statements regarding Roth IRA is false?

Answer:

taxpayers who are married and file separately are not allowed to contribute to a Roth IRA

Question 21: Which of the following statements comparing qualified defined contribution plans and non qualified deferred compensation plans is false?

Answer:

in terms of tax consequences to the employee, earnings on qualified plans are deferred until distributed to the employee, but earnings on non qualified plans are immediately taxable Question 22: Which of the following taxpayers is most likely to qualify for the saver's credit?

Answer:

a LOW AGI taxpayer who contributes to her employer's 401k plan

Question 23: Which of the following is not a self-employed retirement account?

Answer:

SEM 403(c) Question 24: When employees contribute to a traditional 401k plan they _______ allowed to deduct the contributions and they _____ taxed on distributions from the plan.

Answer:

are allowed....are taxed Question 25: Which of the following statements regarding self-employed retirement accounts is true?

Answer:

a self-employed taxpayer who has hired employees may not set up an individual 401k Question 26: Which of the following statements regarding contributions to defined contribution plans is true?

Answer:

the tax laws limit the sum of the employer and employee contributions to a defined contribution plan Question 27: Which of the following statements concerning traditional IRAs and Roth IRAs is true?

Answer:

all of these are true statements