Series 6

  1. What is the Employee elective deferral limit for a Traditional 401K and Safe Harbor 401K plan?
  2. what is the contribution limit for an employee or employer (elective contribution limit) 401K contribution?
  3. What is the maximum catch up contribution for a 401K?
    $5,500 or a total of $23,000
  4. What is the maximum contribution limit for an IRA of any kind.
  5. What is the maximum employer/employee contribution to a 401K of any kind?
    • Cannot exceed the lesser of $51,000 or 100% of compensation.

  6. What is the maximum considered compensation when determining employer and employee contributions to a 401K, an IRA
  7. What is a Simplified Employee Pension Plan?
    SEP IRA -no more than 50 employees
  8. Who funds a SEP IRA
    The boss foots the bill!
  9. 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
  10. 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.
  11. 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.
  12. What is a "Simple IRA"
    Match plan for businesses with 100 or less employees AND no other retirement plan.
  13. 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
  14. What is a KEOGH plan?
    They are for self employed folks. Also called an HR-10. Standard Contribution limits and Maximum Considered Compensation.
  15. 403b?
    Tax Sheltered Annuities for public school employees and non-profits. Limits and contributions are standard.
  16. 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)
  17. What is the standard Contribution Limit?
    100% or $51,000, whichever is less.
  18. What is the standard Maximum Considered Compensation
  19. What is the standard Employee elective deferral limit?
  20. What is the standard Catch up Contribution
    $5,500 to a maximum of ($23,000)
  21. 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)
  22. What is different about a Section 457 plan for Government employees and tax exempt organizations?
    Catch up is $17,500/$35,000
Card Set
Series 6
Terms I need to learn to pass the series 6 for california