Practice Test Geeks(AAMS) Accredited Asset Management Specialist Practice Test
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Retirement Planning & Distribution Strategies Flashcards

7 cards from real AAMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Retirement Planning & Distribution Strategies flashcards as text

  1. What is the required minimum distribution (RMD) age for traditional IRA owners under the SECURE 2.0 Act?

    Answer: 73

    The SECURE 2.0 Act raised the RMD starting age to 73 for individuals who turn 72 after December 31, 2022.

  2. Which retirement account type allows tax-free qualified withdrawals in retirement?

    Answer: Roth IRA

    Roth IRA contributions are made with after-tax dollars, so qualified distributions in retirement are entirely tax-free.

  3. An employee earns $120,000/year. The employer offers a 3% SIMPLE IRA match. What is the maximum employer match contribution?

    Answer: $3,600

    The employer match is 3% of compensation: $120,000 × 0.03 = $3,600.

  4. What is the primary purpose of a stretch IRA strategy?

    Answer: Extend tax-deferred growth across generations

    A stretch IRA allows non-spouse beneficiaries to take distributions over their own life expectancy, extending tax-deferred or tax-free growth over multiple generations.

  5. Which of the following distributions from a traditional IRA is subject to the 10% early withdrawal penalty?

    Answer: Distribution at age 60 due to disability

    While disability is an exception for most penalty rules, distributions before age 59½ from an IRA for disability are exempt only if the disability is total and permanent; a distribution solely due to age 60 (before 59½) for disability must meet strict IRS criteria — but distributions at age 60 are generally penalty-free regardless; the trick here is the age-55 separation rule applies only to qualified plans, not IRAs, making that choice the real penalty trap. The question is testing that the age-55 rule (choice B) does NOT apply to IRAs — that rule applies only to employer-sponsored plans — so a 55-year-old taking IRA funds after leaving a job would owe the penalty.

  6. What is the annual contribution limit for a 401(k) plan for employees under age 50 in 2024?

    Answer: $23,000

    For 2024, the elective deferral limit for 401(k) plans is $23,000 for employees under age 50.

  7. A client uses the '4% rule' for retirement income. If their portfolio is $1.5 million, what is the suggested first-year withdrawal?

    Answer: $60,000

    The 4% rule suggests withdrawing 4% of the portfolio in the first year: $1,500,000 × 0.04 = $60,000.