AAMS Retirement Planning & Distribution Strategies

Question 1

What is the required minimum distribution (RMD) age for traditional IRA owners under the SECURE 2.0 Act?

Accepted Answer

73

Answer

70½

Answer

72

Answer

75

Question 2

Which retirement account type allows tax-free qualified withdrawals in retirement?

Accepted Answer

Roth IRA

Answer

Traditional IRA

Answer

SIMPLE IRA

Answer

SEP IRA

Question 3

An employee earns $120,000/year. The employer offers a 3% SIMPLE IRA match. What is the maximum employer match contribution?

Accepted Answer

$3,600

Answer

$3,000

Answer

$4,200

Answer

$2,400

Question 4

What is the primary purpose of a stretch IRA strategy?

Accepted Answer

Extend tax-deferred growth across generations

Answer

Maximize contributions each year

Answer

Convert assets to Roth accounts

Answer

Reduce annual RMDs

Question 5

Which of the following distributions from a traditional IRA is subject to the 10% early withdrawal penalty?

Accepted Answer

Distribution at age 60 due to disability

Answer

Distribution at age 55 after separation from service

Answer

Distribution used for a first-home purchase up to $10,000

Answer

Distribution used to pay substantially equal periodic payments (SEPP)

Question 6

What is the annual contribution limit for a 401(k) plan for employees under age 50 in 2024?

Accepted Answer

$23,000

Answer

$19,500

Answer

$22,500

Answer

$30,500

Question 7

A client uses the '4% rule' for retirement income. If their portfolio is $1.5 million, what is the suggested first-year withdrawal?

Accepted Answer

$60,000

Answer

$45,000

Answer

$75,000

Answer

$80,000