Customer Accounts第 84 / 110 题
A customer receives a distribution check from a former employer's 401(k) plan and wants to move the money to an IRA. Which statement is correct?
a.The customer has 12 months to complete the rollover
b.The customer generally has 60 days to deposit the funds into the IRA, and a direct trustee-to-trustee transfer avoids withholding and the deadline
c.The customer may complete an indirect rollover as many times as desired in a 12-month period
d.Rollovers from employer plans to IRAs are not permitted
解析
An indirect rollover must be completed within 60 days or the distribution becomes taxable, and plan distributions paid to the participant are generally subject to mandatory federal withholding. A direct transfer between custodians sidesteps both problems and has no frequency limit. IRA-to-IRA indirect rollovers are limited to one in any 12-month period.
法律依据: Internal Revenue Code免费刷完整 110 道题库 — 无需注册。
同考点相关题目
- A 401(k) plan is best described as:
- A 403(b) tax-sheltered annuity plan is available to employees of:
- A key characteristic of a SEP IRA is that:
- Before recommending a variable annuity to a retail customer, a representative must have a reasonable basis grounded in which information?
- A 72-year-old retiree needs to draw income from a $60,000 lump sum within the next 12 months and has no other liquid savings. Which recommendation is least suitable?
- A 28-year-old contributing monthly to an IRA states that the goal is maximum long-term growth and that no withdrawals are planned for 30 years. The most appropriate recommendation is: