RIA Retirement Planning

Question 1

A Traditional IRA contribution may be tax-deductible depending on:

Accepted Answer

Whether the investor or spouse has access to a workplace retirement plan and their income level

Answer

The investor's age only

Answer

The number of dependents claimed

Answer

The state in which the investor resides

Question 2

The primary advantage of a Roth IRA over a Traditional IRA is:

Accepted Answer

Tax-free growth and tax-free qualified withdrawals in retirement

Answer

Immediate tax deduction on contributions

Answer

No contribution limits

Answer

Mandatory annual distributions

Question 3

Required Minimum Distributions (RMDs) from Traditional IRAs must begin by:

Accepted Answer

April 1 of the year following the year the account holder turns 73

Answer

Age 59½

Answer

Age 65

Answer

Retirement, regardless of age

Question 4

A 401(k) plan offers which key tax advantage?

Accepted Answer

Pre-tax contributions reduce current taxable income, with taxes deferred until withdrawal

Answer

Contributions are made with after-tax dollars only

Answer

All growth is permanently tax-exempt

Answer

Contributions can be withdrawn tax-free at any age

Question 5

The 'stretch IRA' strategy was largely eliminated by:

Accepted Answer

The SECURE Act of 2019

Answer

The Pension Protection Act of 2006

Answer

The Tax Cuts and Jobs Act of 2017

Answer

The Dodd-Frank Act of 2010

Question 6

SEP-IRA plans are primarily designed for:

Accepted Answer

Self-employed individuals and small business owners

Answer

Large corporation employees only

Answer

Government employees

Answer

Non-profit organizations exclusively