CTC CTC Retirement & Deferred Compensation

Question 1

What is the 2024 annual contribution limit for a solo 401(k) employee elective deferral (under age 50)?

Accepted Answer

$23,000

Answer

$22,500

Answer

$20,500

Answer

$19,500

Question 2

A Defined Benefit (DB) pension plan is most advantageous for a high-income business owner who is:

Accepted Answer

Older with fewer years to fund the plan

Answer

Young with a long runway to retirement

Answer

In a low tax bracket seeking long-term growth

Answer

Primarily seeking Roth tax-free growth

Question 3

Under a SIMPLE IRA plan, what is the employer matching contribution requirement?

Accepted Answer

Up to 3% of employee compensation (matching) or 2% non-elective

Answer

Up to 5% of employee compensation

Answer

Up to 25% of total payroll

Answer

A fixed 3% of all eligible employees' compensation

Question 4

Which retirement plan type requires no employer contribution in years when cash flow is tight, offering maximum flexibility?

Accepted Answer

SEP-IRA

Answer

Defined benefit plan

Answer

SIMPLE IRA

Answer

Money purchase pension plan

Question 5

The Required Minimum Distribution (RMD) starting age for individuals who turn 73 in 2023 or later is:

Accepted Answer

73

Answer

70½

Answer

72

Answer

75

Question 6

A tax-free Roth conversion strategy is most beneficial when a client's current tax rate is:

Accepted Answer

Lower than their expected future rate

Answer

Higher than their expected future rate

Answer

Equal to their expected future rate

Answer

Above the 37% top marginal rate