Series 65 Quiz: Differentiate Retirement Plans

What this quiz covers

This quiz focuses on Differentiate Retirement Plans, giving you a quick way to practice the rules, question types, and explanations that matter most for Series 65.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. Protected only if invested exclusively in municipal bonds
2. No creditor protection applies to any employer-sponsored plan
3. Typically stronger federal creditor protection than most nonqualified plans (correct answer)
4. Protected only after the participant begins RMDs

Question 2

1. Distributions are permitted only at age 59 with a 10% penalty otherwise
2. Distributions are always tax-free if held five years
3. Distributions are prohibited until required minimum distribution age
4. Distributions may occur at separation from service without the 10% penalty (correct answer)

Question 3

1. 401(k) assets are always available to employer creditors
2. Nonqualified plans have higher IRA contribution limits
3. 401(k) is ERISA-qualified; nonqualified plans are typically unsecured promises (correct answer)
4. Nonqualified plans require RMDs beginning at age 59

Question 4

1. Limit equals 25% of compensation with no dollar cap
2. No annual limit applies if income is below the median
3. A single annual limit applies, with an additional catch-up at age 50+ (correct answer)
4. Limit is set by the employer and can exceed any federal maximum

Question 5

1. RMDs apply to Roth IRAs starting at age 72
2. RMDs apply to Roth IRAs starting at age 73
3. RMDs do not apply to Roth IRAs during the owner's lifetime (correct answer)
4. RMDs apply only after age 59

Question 6

1. Only publicly traded corporations may sponsor 403(b) plans
2. Public schools and certain tax-exempt organizations may sponsor 403(b)s (correct answer)
3. Only sole proprietors may sponsor 403(b) plans
4. Only governmental employers may sponsor 403(b) plans

Question 7

1. Contributions are deductible; qualified withdrawals are taxable
2. Contributions are after-tax; qualified withdrawals are tax-free (correct answer)
3. Contributions are pre-tax; all withdrawals are tax-free
4. Contributions are after-tax; all withdrawals are taxable

Question 8

1. Rollovers are always taxable because IRAs are after-tax accounts
2. Rollovers are prohibited once the participant reaches age 59
3. Direct rollovers can generally avoid current taxation (correct answer)
4. Rollovers are allowed only into a Roth IRA, not a traditional IRA

Question 9

1. All distributions are fully tax-free due to after-tax contributions
2. All distributions are fully taxable regardless of basis
3. Distributions are taxed pro rata between basis and earnings (correct answer)
4. Only earnings are tax-free; basis is always taxable

Question 10

1. RMDs apply only after the IRA is rolled into a Roth IRA
2. RMDs are required beginning at the applicable RMD age (correct answer)
3. RMDs are never required for any IRA owner
4. RMDs are required only if contributions were nondeductible

Question 11

1. A 401(k) permits only after-tax contributions; nonqualified plans are pre-tax
2. Nonqualified plans have the same annual elective deferral limits as 401(k)s
3. A 401(k) is subject to ERISA; nonqualified plans generally are not (correct answer)
4. Nonqualified plans require participant-directed rollover elections each year

Question 12

1. Contributions are deductible; qualified withdrawals are taxable
2. Contributions are after-tax; qualified withdrawals are tax-free (correct answer)
3. Contributions are pre-tax; all withdrawals are tax-free
4. Contributions are after-tax; all withdrawals are taxable

Question 13

1. 403(b) contributions are limited to $6,000 annually for all participants
2. Traditional IRA limits are generally higher than 403(b) elective deferrals
3. Traditional IRAs and 403(b)s share the same annual dollar limit
4. Traditional IRA limits are generally lower than 403(b) elective deferrals (correct answer)

Question 14

1. Employee elective deferrals only, up to the IRA limit
2. Employee after-tax contributions only, with tax-free withdrawals
3. Employer contributions only, generally discretionary by the employer (correct answer)
4. Employee deferrals with mandatory matching contributions

Question 15

1. Limited to the IRA dollar cap, with no catch-up allowed
2. Employee deferral limit applies, with potential catch-up at age 50+ (correct answer)
3. Unlimited employee deferrals are permitted if the employer matches
4. Only employer contributions are permitted, not employee deferrals

Question 16

1. RMDs never apply to any 401(k) account balance
2. RMDs generally apply starting at the required beginning age (correct answer)
3. RMDs apply only if the participant made Roth contributions
4. RMDs begin only when employment ends, regardless of age

Question 17

1. RMDs apply only if the IRA holds employer stock
2. RMDs never apply if contributions were nondeductible
3. RMDs generally begin at the applicable required beginning age (correct answer)
4. RMDs begin only when Social Security starts

Question 18

1. Employee deferrals only, with employer matching prohibited
2. Employer contributions only, with no employee deferrals permitted
3. Employee after-tax contributions only, with no employer role
4. Employee deferrals plus required employer match or nonelective contribution (correct answer)

Question 19

1. No penalty applies to any IRA withdrawal before age 59
2. A 10% additional tax may apply before age 59, with exceptions (correct answer)
3. A 20% withholding replaces any early distribution penalty
4. Penalty applies only to Roth IRAs, not traditional IRAs

Question 20

1. An executive defers a bonus into an employer deferred compensation account (correct answer)
2. A worker contributes to a traditional IRA at a brokerage firm
3. A teacher salary-defers into a 403(b) annuity contract
4. An employee salary-defers into a 401(k) with employer match