Series 65: Exercise

Taken from our Series 65 Online Guide

Exercise

Answer the Following Questions

  1. 1. How is a Roth 401(k) similar to a Roth IRA and/or a 401(k) plan?
  2. A. As with a Roth IRA, as long as participants in a Roth 401(k) are over 59 1/2 years old and have had the account for five years or more, they can make all withdrawals tax-free.
  3. B. Roth 401(k)s resemble traditional 401(k)s in that the employer can make matching contributions into the after-tax Roth 401(k).
  4. C. A Roth 401(k) is similar to a Roth IRA in that they both have no restrictions on income level.
  5. D. As with the Roth IRA, Roth 401(k) participants have to start taking distributions from the Roth 401(k) beginning the year the owner turns 70 1/2.
  6. 2. True or false. A Roth 401(k) may be rolled over into a traditional 401(k).
  7. 3. If Winston wants to roll over or transfer his qualified retirement plan when he leaves his job next month, what effects does he need to consider?
  8. A. Whether he can set up another suitable plan before he leaves his job or within 60 days
  9. B. Whether he did a rollover of the same account in the last year
  10. C. Whether he can replace the 20% the IRS will take if he chooses a rollover
  11. D. All of the above
  12. 4. True or false. Rollovers of all qualified retirement plans require that 20% of the balance be held by the IRS for the rest of that tax year.
  13. 5. True or false. Roth

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