CEA Retirement Planning & IRA Estate Strategies

Question 1

Under the SECURE Act 2.0 (effective 2023), at what age must required minimum distributions (RMDs) begin for individuals born between 1951 and 1959?

Accepted Answer

73

Answer

70½

Answer

72

Answer

75

Question 2

Which type of IRA provides tax-free qualified distributions in retirement and can pass income-tax-free to heirs?

Accepted Answer

Roth IRA

Answer

Traditional IRA

Answer

SEP IRA

Answer

SIMPLE IRA

Question 3

Under the SECURE Act (2019), most non-spouse beneficiaries who inherit an IRA must distribute all funds within how many years of the owner's death?

Accepted Answer

10 years

Answer

5 years

Answer

15 years

Answer

20 years

Question 4

Which group qualifies as Eligible Designated Beneficiaries (EDBs) under the SECURE Act, allowing them to stretch IRA distributions over their lifetime?

Accepted Answer

Surviving spouses, minor children, and disabled individuals

Answer

Adult children of the IRA owner

Answer

Grandchildren under age 30

Answer

Any family member named as beneficiary

Question 5

What is the excise tax penalty under SECURE Act 2.0 for failing to take a required minimum distribution (RMD)?

Accepted Answer

25% of the amount not distributed

Answer

10% of the amount not distributed

Answer

50% of the amount not distributed

Answer

The full undistributed amount becomes taxable immediately

Question 6

A Qualified Charitable Distribution (QCD) allows individuals aged 70½ or older to donate directly from their IRA to a charity. What is the annual per-person limit?

Accepted Answer

$100,000

Answer

$50,000

Answer

$75,000

Answer

$150,000

Question 7

Which of the following best describes the 'stretch IRA' strategy that was largely eliminated by the SECURE Act for most beneficiaries?

Accepted Answer

Allowing non-spouse beneficiaries to take distributions over their own life expectancy

Answer

Converting a traditional IRA to a Roth IRA over multiple years

Answer

Splitting an IRA into multiple accounts for different beneficiaries

Answer

Rolling an inherited IRA into a new employer retirement account