CWS Retirement Planning Flashcards
6 cards from real CWS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CWS Retirement Planning flashcards as text
What is the 2024 contribution limit for a 401(k) plan for an employee under age 50?
Answer: $23,000
The 2024 IRS elective deferral limit for 401(k) plans is $23,000 for employees under age 50.
Under the SECURE 2.0 Act, what is the required beginning date for required minimum distributions (RMDs) for individuals born in 1951 or later?
Answer: April 1 of the year following the year they turn 73
SECURE 2.0 raised the RMD starting age to 73 for individuals born between 1951 and 1959, with RMDs beginning April 1 of the following year.
A client is 55 years old and separates from service from their employer. Under which circumstance can they take penalty-free 401(k) withdrawals?
Answer: Using the Rule of 55 since separation occurs at or after age 55
The Rule of 55 allows penalty-free 401(k) withdrawals if you separate from service in or after the year you turn 55.
Which Social Security claiming strategy involves one spouse claiming spousal benefits while the other defers their own benefit to grow?
Answer: Restricted application
The restricted application strategy allows a spouse to claim spousal benefits at full retirement age while letting their own benefit grow to age 70.
What is a defined benefit pension plan's primary advantage over a defined contribution plan from a retiree's perspective?
Answer: Guaranteed lifetime income regardless of market performance
Defined benefit plans provide a predictable, guaranteed income stream for life, eliminating longevity and investment risk for the retiree.
What is the catch-up contribution limit for individuals aged 60–63 under SECURE 2.0 starting in 2025?
Answer: $11,250
SECURE 2.0 created a super catch-up contribution of $11,250 for 401(k) participants aged 60–63 beginning in 2025.