Exercise

Choose the correct answer.

1. If Winston wants to roll over or transfer his qualified retirement plan when he leaves his job next month, what does he need to consider?

A. Whether he can set up another suitable plan before he leaves his job or within 60 days

B. Whether he did a rollover of the same account in the last year

C. Whether he can replace the 20% the IRS will take if he chooses a rollover

D. All of the above

Answer true or false.

2. _____ A Roth 401(k) may be rolled over into a traditional 401(k).

3. _____ Rollovers of all qualified retirement plans require that 20% of the balance be held by the IRS for the rest of that tax year.

A