CWS CWS Retirement Planning

Question 1

What is the 2024 contribution limit for a 401(k) plan for an employee under age 50?

Accepted Answer

$23,000

Answer

$20,500

Answer

$22,500

Answer

$19,500

Question 2

Under the SECURE 2.0 Act, what is the required beginning date for required minimum distributions (RMDs) for individuals born in 1951 or later?

Accepted Answer

April 1 of the year following the year they turn 73

Answer

April 1 of the year following the year they turn 70½

Answer

April 1 of the year following the year they turn 72

Answer

December 31 of the year they turn 73

Question 3

A client is 55 years old and separates from service from their employer. Under which circumstance can they take penalty-free 401(k) withdrawals?

Accepted Answer

Using the Rule of 55 since separation occurs at or after age 55

Answer

They must wait until age 59½

Answer

They must roll over to an IRA first

Answer

Only if they have a disability

Question 4

Which Social Security claiming strategy involves one spouse claiming spousal benefits while the other defers their own benefit to grow?

Accepted Answer

Restricted application

Answer

File and suspend

Answer

Delayed retirement credits

Answer

Windfall elimination provision

Question 5

What is a defined benefit pension plan's primary advantage over a defined contribution plan from a retiree's perspective?

Accepted Answer

Guaranteed lifetime income regardless of market performance

Answer

Higher investment control

Answer

Tax-free distributions

Answer

No vesting requirements

Question 6

What is the catch-up contribution limit for individuals aged 60–63 under SECURE 2.0 starting in 2025?

Accepted Answer

$11,250

Answer

$7,500

Answer

$10,000

Answer

$12,500