Card Set Information
Terms I need to learn to pass the series 6 for california
What is the Employee elective deferral limit for a Traditional 401K and Safe Harbor 401K plan?
what is the contribution limit for an employee or employer (elective contribution limit) 401K contribution?
What is the maximum catch up contribution for a 401K?
$5,500 or a total of $23,000
What is the maximum contribution limit for an IRA of any kind.
What is the maximum employer/employee contribution to a 401K of any kind?
Cannot exceed the lesser of $51,000 or 100% of compensation.
What is the maximum considered compensation when determining employer and employee contributions to a 401K, an IRA
What is a Simplified Employee Pension Plan?
SEP IRA -no more than 50 employees
Who funds a SEP IRA
The boss foots the bill!
What is the contribution limit on a SEP IRA?
25% of employees earned income or $51,000. Whichever is less. This is different from 401K which is 100% of compensation
What are the restrictions for the employee to participate in a SEP IRA
Must be at least 21 and worked for employer 3 of the last 5 years, and has been paid at least $550 in the last 12 months.
What is the catch-up contribution for a SEP IRA
Trick Question!!! There is no catch-Up for a SEP. SEP's can't catch up!
However, if the SEP is contained WITHIN a traditional IRA and it is allowed, a catch-up contribution up to the standard $5,500 or $6,500 if over 50 are allowed.
What is a "Simple IRA"
Match plan for businesses with 100 or less employees AND no other retirement plan.
What are the numbers for a SIMPLE IRA
Employee Contribution Limit $12,000
Catch-Up - $2,500 ($14,500 limit)
Same Max of $255,000
What is a KEOGH plan?
They are for self employed folks. Also called an HR-10. Standard Contribution limits and Maximum Considered Compensation.
Tax Sheltered Annuities for public school employees and non-profits. Limits and contributions are standard.
What are the standard limits all plans seem to have?
Contribution limit: 100% or $51,000, which ever is LESS
Maximum Considered Compensation $255,000
Employee elective deferral limit - $17,500
Catch-up Contribution - $5,500 ($23,000)
What is the standard Contribution Limit?
100% or $51,000, whichever is less.
What is the standard Maximum Considered Compensation
What is the standard Employee elective deferral limit?
What is the standard Catch up Contribution
$5,500 to a maximum of ($23,000)
Which plan has different limits from the standard?
SIMPLE IRA - it's not simple because the limits are different! The contribution and catch up are different. ($12,000 and $2,500/$14,000)
What is different about a Section 457 plan for Government employees and tax exempt organizations?
Catch up is $17,500/$35,000