CFP Retirement Planning & Distribution Strategies

Question 1

What is the maximum annual contribution limit for a Traditional IRA for taxpayers under age 50 in 2024?

Accepted Answer

$7,000

Answer

$6,000

Answer

$6,500

Answer

$8,000

Question 2

Under the required minimum distribution (RMD) rules, at what age must a traditional IRA owner begin taking RMDs as of 2023?

Accepted Answer

73

Answer

70½

Answer

72

Answer

75

Question 3

Which retirement account type allows tax-free qualified distributions in retirement and has no required minimum distributions during the owner's lifetime?

Accepted Answer

Roth IRA

Answer

Traditional IRA

Answer

SEP-IRA

Answer

SIMPLE IRA

Question 4

What is the penalty for early withdrawal from a traditional IRA before age 59½, in addition to ordinary income taxes?

Accepted Answer

10%

Answer

5%

Answer

15%

Answer

20%

Question 5

Which of the following is NOT a qualified exception to the 10% early withdrawal penalty from an IRA?

Accepted Answer

Paying off credit card debt

Answer

Disability

Answer

First-time home purchase (up to $10,000)

Answer

Substantially equal periodic payments (72(t))

Question 6

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

Accepted Answer

$23,000

Answer

$19,500

Answer

$20,500

Answer

$22,500