Test Your Smarts on…401(k)s and IRAs What you don’t know won’t hurt you. That might be true in some circles. But it isn’t the case with retirement accounts such as 401(k)s, defined-benefit plans, individual retirement accounts, profit-sharing plans and ESOP plans—especially when it comes to distribution rules. In fact, not knowing something might cost you a lot of money in penalties and fines, as well as lost opportunities. Here’s a quiz to test your knowledge, based on some frequently asked questions directed to Ben Norquist, president and chief executive of Convergent Retirement Plan Solutions; Beverly DeVeny, director of retirement education for Ed Slott & Co.; and Denise Appleby, the CEO of Appleby Retirement Consulting Inc. and RetirementDictionary.com. 1. True or false. Roth 401(k) owners must take required minimum distributions, or RMDs, just as owners of traditional 401(k)s do. ANSWER: True. The Roth 401(k), a cousin of the Roth IRA, is funded with after-tax c
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Showing posts from October, 2017