Podcast
Questions and Answers
What is a key advantage of qualified retirement plans?
What is a key advantage of qualified retirement plans?
- They provide tax deductions for business expenses and tax-deferred benefits to employees. (correct)
- They allow for employer funding to be treated as taxable income to employees.
- They require high minimum contributions from employees.
- They are not considered a business expense for the employer.
Which type of plan allows for employer contributions that can be deducted as business expenses?
Which type of plan allows for employer contributions that can be deducted as business expenses?
- All retirement plans allow deduction of employer contributions.
- Qualified plans allow employer funding contributions to be deducted as business expenses. (correct)
- Non-qualified plans only allow contributions to be treated as employee compensation.
- Only defined benefit (DB) plans are eligible for employer deductions.
Which of the following retirement plans is designed to help mitigate longevity risk?
Which of the following retirement plans is designed to help mitigate longevity risk?
- 401(k) plans with employer matching contributions.
- Defined contribution (DC) plans that provide fixed payouts.
- Traditional IRAs that limit withdrawal options.
- Annuities that offer guaranteed income for a lifetime. (correct)
What distinguishes non-qualified retirement plans from qualified plans?
What distinguishes non-qualified retirement plans from qualified plans?
Which retirement plan typically allows for after-tax contributions that grow tax-free upon withdrawal?
Which retirement plan typically allows for after-tax contributions that grow tax-free upon withdrawal?
Flashcards
Qualified Retirement Plan
Qualified Retirement Plan
A retirement plan where employer contributions are deductible as a business expense, and employee benefits aren't taxed until received.
Non-Qualified Retirement Plan
Non-Qualified Retirement Plan
A retirement plan where employer contributions aren't deductible as business expenses unless designated as compensation to the employee.
Retirement Plan Types
Retirement Plan Types
Common retirement plans include defined contribution (DC), defined benefit (DB), 401(k), IRA, and Roth IRA, each with different structures and advantages.
Annuities
Annuities
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Longevity Risk
Longevity Risk
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Study Notes
Qualified Retirement Plans
- Deductible as a business expense
- Not taxable income to the employee until received as benefits
Non-Qualified Retirement Plans
- Do not allow employer funding contributions to be deducted as business expenses
- Unless classified as compensation to the employee
Retirement Plan Types
- DC (Defined Contribution) plans: Popular retirement plans
- DB (Defined Benefit) plans: Popular retirement plans
- 401(k): Popular retirement plan
- IRA (Individual Retirement Account): Popular retirement plan
- Roth IRA: Popular retirement plan
Annuities
- Understand different types of annuities
- Know the options available with annuities
- Understand the advantages and disadvantages of annuities
- Learn how annuities can be used to mitigate longevity risk
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Description
This quiz covers the key differences between qualified and non-qualified retirement plans, including tax implications and types of plans such as 401(k)s and IRAs. Learn about annuities and how they can help manage longevity risk in retirement. Test your knowledge on various retirement planning concepts and strategies.
