AAMS Retirement Planning & Distribution Strategies

Question 1

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

Accepted Answer

73

Answer

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

Question 2

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

Accepted Answer

Roth IRA

Answer

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

Question 3

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

Accepted Answer

$3,600

Answer

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

Question 4

What is the primary purpose of a stretch IRA strategy?

Accepted Answer

Extend tax-deferred growth across generations

Answer

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.

Question 5

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

Accepted Answer

Distribution at age 60 due to disability

Answer

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.

(AAMS) Accredited Asset Management Specialist Practice Test

(AAMS) Accredited Asset Management Specialist Practice Test

AAMS Retirement Planning & Distribution Strategies