Review Questions Module 4
SIMPLE IRAs
Unless otherwise noted, assume the following questions relate to participants under age 50.
a. the start of the election period
b. 30 days before the election period
c. 60 days before the election period
d. 90 days before the election period
a. compensation
b. compensation up to a maximum of $150,000 -- adjusted for inflation
c. years of service
d. earnings history
I. match employee elective deferrals dollar-for-dollar
II. match employee elective deferrals dollar-for-dollar up to 3% of compensation
III. contribute no more than 2% of the employee's compensation as a non-elective contribution
IV. contribute 2% of the employee's compensation as a non-elective contribution
a. I or III
b. I or IV
c. II or III
d. II or IV
a. less than that allowed in a "regular" IRA
b. more than that allowed in a "regular" IRA
c. the same as that allowed in a "regular IRA
d. offset by contributions to "regular" IRAs
I. 401(k) plan
II. IRA plan
III. SEP plan
a. I only
b. II only
c. I and II only
d. I and III only
a. vesting requirements under ERISA
b. non-discrimination rules
c. matching contribution requirements
d. drawing up plan documents
a. employers with fewer than 100 employees
b. only employers with employees covered by a collective bargaining agreement
c. employers who offer other qualified retirement plans
d. any of the above
a. all employees who worked for the employer during the year
b. only those employees who may make contributions to the plan
c. only those employees not covered by a collective bargaining agreement
d. only those employees who have one year of service and are age 21 or older
a. new plans may be established on a fiscal or calendar year
b. existing plans may continue to operate on a fiscal or calendar year basis
c. existing plans may continue to operate on a fiscal year basis, but new plans must be established on a calendar year basis
d. all SIMPLE plans must operate on a calendar year basis
a. all "eligible" employees may participate
b. only those "eligible" employees who expect to earn at least $5,000 from the employer this year
c. only those "eligible" employees who earned at least $5,000 from the employer in any of the past two years
d. only those "eligible" employees who expect to earn at least $5,000 from the employer this year and who earned at least $5,000 from the employer in any of the past two years
a. may not contribute to Employer B's plan this year
b. may contribute to either Employer A or Employer B's plan, but not both during the same year
c. may contribute up to the annual SIMPLE contribution limit to Employer A's plan and up to the annual SIMPLE contribution limit to Employer B's plan this year
d. may contribute up to the annual SIMPLE contribution limit this year in split between Employer A and Employer B's plans
I. employee elective deferrals
II. employee voluntary contributions
III. employer matching contributions
IV. employer non-elective contributions
a. I only
b. I or II only
c. III or IV only
d. I, III or IV only
a. employee elective deferrals
b. employee voluntary, after-tax contributions
c. employer matching contributions
d. employer non-elective contributions
a. only on the election date
b. by giving notice within 30 days of the election date
c. by giving notice within 60 days of the election date
d. at any time
a. as quickly as possible
b. by the 30th day after the end of the month in which the employee would have otherwise received the deferral in cash
c. by the end of the employer's tax year
d. by the filing date of the employer's tax return
a. as soon as is reasonably possible
b. by the 30th day after the end of the month in which the employee would have otherwise received the deferral in cash
c. by the end of the employer's tax year
d. by the filing date of the employer's tax return
a. three-year cliff vesting
b. five-year cliff vesting
c. three-to-seven year graded vesting
d. immediately
Which of the following are "immediately and fully" vested in a SIMPLE IRA plan?
I. employee elective deferrals
II. employee voluntary contributions
III. employer matching contributions
IV. employer non-elective contributions
a. I only
b. I and II only
c. III and IV only
d. I, III and IV only
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