Series 65 – Uniform Investment Adviser Law Exam Retirement Plans and Taxation

Question 1

What is the annual contribution limit for a Traditional IRA for an individual under age 50 in 2024?

Accepted Answer

$7,000

Answer

The 2024 IRA contribution limit is $7,000 for individuals under age 50, up from $6,500 in 2023.

Question 2

Which of the following best describes a Roth IRA's tax treatment?

Accepted Answer

Contributions are after-tax; qualified withdrawals are tax-free

Answer

Roth IRA contributions are made with after-tax dollars, and qualified distributions in retirement are completely tax-free.

Question 3

An individual participates in a 401(k) plan and also wants to contribute to a Traditional IRA. Which factor determines whether the IRA contribution is tax-deductible?

Accepted Answer

The individual's modified adjusted gross income (MAGI)

Answer

When an active participant in an employer plan contributes to a Traditional IRA, deductibility phases out based on the individual's MAGI.

Question 4

At what age must Required Minimum Distributions (RMDs) begin for most retirement accounts under current law (SECURE 2.0)?

Accepted Answer

73

Answer

Under SECURE 2.0 Act (effective 2023), the RMD starting age was raised to 73 for individuals born between 1951 and 1959.

Question 5

Which retirement plan type requires the employer to contribute a specific benefit amount to each eligible employee's account based on years of service and compensation?

Accepted Answer

Defined benefit plan

Answer

A defined benefit plan promises a specified monthly benefit at retirement, typically based on salary history and years of service.

Series 65 – Uniform Investment Adviser Law Exam Practice Test

Series 65 – Uniform Investment Adviser Law Exam Practice Test

Series 65 – Uniform Investment Adviser Law Exam Retirement Plans and Taxation