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

$6,000

Answer

$6,500

Answer

$8,000

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

Contributions are tax-deductible; withdrawals are taxable

Answer

Contributions and withdrawals are both tax-free

Answer

Contributions are pre-tax; withdrawals are partially taxable

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

The employer's matching contribution rate

Answer

The total years of service with the employer

Answer

The type of investments held in the 401(k)

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

70½

Answer

72

Answer

75

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

Defined contribution plan

Answer

SEP-IRA

Answer

SIMPLE IRA

Question 6

What is the penalty for taking an early withdrawal from a Traditional IRA before age 59½, assuming no exception applies?

Accepted Answer

10% penalty plus ordinary income tax

Answer

5% penalty plus ordinary income tax

Answer

15% penalty only

Answer

10% penalty only with no income tax

Question 7

Which of the following is NOT a qualifying exception to the 10% early withdrawal penalty from an IRA?

Accepted Answer

Purchasing a second vacation home

Answer

Disability

Answer

Higher education expenses

Answer

First-time home purchase (up to $10,000)