Module 2 Part 1

To qualify as a public school, an organization must meet two requirements: a irregular faculty and curriculum, and an irregularly enrolled student body in attendance.

• True

• False

A qualified retirement plan meets the guidelines set out by ERISA.

• False

• True

Defines a governmental retirement plan as a plan established and maintained for its employees by the government of the United States, by the government of any state or political subdivision of the state, or by agencies or instrumentalities of the government of the United States or of a state government. A

• IRC Section 401a

• IRC Section 403b

• IRC Section 414d

• IRC Section 457f

Retirement savings plan sponsored by a governmental institution rather than a public company and offered to key governmental employees as an added incentive to stay with the organization

• 457b

• 403b

• 457f

• 401a

The age 50 catch-up contribution is not available to participants in a ___ plan.

• 457f

• 401k

• 457b

• 401a

Distributions prior to age ___ are subject to a 10% premature distribution penalty tax unless an IRC exception applies.

• 59½

• 72

• 65

• 60

The limit on the combination of all employer contributions and employee elective deferrals to all Section 403(b) accounts

• Section 403(b) annual elective deferral limit

• Section 403(b) plan annual additions limit

• Section 457(b) plan annual additions limit

• Section 457(b) annual elective deferral limit

Provided by an insurance company and may be used to accumulate assets for retirement or to provide a plan participant with a guaranteed stream of income at a future date, typically at retirement.

• Mutual fund custodial account

• Insurance contract

• Annuity contract

• Roth account

A separate account in a Section 403(b) plan that holds designated elective deferrals that the participant elects to include in gross income

• Catch up contribution

• Designated ROTH contribution

• Cost basis

• Designated ROTH account

It is a nonqualified deferred compensation plan (NQDC) and is available only for certain state and local governments and nongovernmental entities that are tax exempt under IRC Section 501.

• Section 457 plan

• Section 403 plan

• Section 401 plan

• Section 414 plan