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Which of the following plans does not have the requirement that its participants must begin withdrawing funds from the plan by April 1st of the year after they turn 70 ?
i. SIMPLE IRA II. 401(k)
iii. Roth IRA
IV. profit-sharing plan
Suggested Answer: D
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35 comments · newest first
KI
Kimberely
11 months ago
Profit-sharing plans can also skip the mandatory withdrawals.
CO
Cordell
11 months ago
I thought all plans had that rule.
JA
Jamal
12 months ago
Wait, are you sure about that?
LE
Leah
12 months ago
Totally agree, Roths are flexible!
RO
Royal
1 year ago
Roth IRAs don't require withdrawals at 70.
LU
Luke
1 year ago
I’m leaning towards option C, since I know Roth IRAs don’t require withdrawals at 70, but I’m not confident about the others.
RO
Rolland
1 year ago
I’m pretty certain that SIMPLE IRAs do have mandatory distributions, but I’m confused about the 401(k) and profit-sharing plan.
AL
Albert
1 year ago
I feel like we practiced a question similar to this, and I think the profit-sharing plan might also not have that requirement.
AN
Annette
1 year ago
I think I remember that Roth IRAs don’t have the same withdrawal requirements as traditional accounts, but I’m not completely sure.
AN
Anika
1 year ago
Hmm, I think the Roth IRA is the answer here. From what I remember, it's the only one on the list that doesn't require mandatory distributions starting at age 70 1/2. But I'll double-check to be sure.
ER
Erick
1 year ago
I'm a little confused on the differences between these retirement plans. I'll need to review the key features of each one to determine which one doesn't have the 70 1/2 withdrawal rule.
BE
Bethanie
1 year ago
I've got this! The Roth IRA is the only one on the list that doesn't have the mandatory withdrawal requirement by age 70 1/2. The other plans all have that rule.
CR
Cristal
1 year ago
Okay, let me think this through. The Roth IRA is definitely exempt from that rule, so that's one option. But I'm not sure about the others - I'll have to double-check the specifics.
NA
Narcisa
1 year ago
Hmm, this is a tricky one. I'll need to carefully review the details of each plan to determine which one doesn't have the 70 1/2 withdrawal requirement.
GA
Galen
1 year ago
Wait, we have to start withdrawing from our plans by 70? Guess they're trying to make sure we don't outlive our money. Or our patience.
TA
Taryn
1 year ago
Ah, the SIMPLE IRA, the plan that's anything but simple. At least I won't have to worry about mandatory distributions, right?
TE
Teri
1 year ago
Good to know, thanks for clarifying!
LI
Ligia
1 year ago
So, the answer would be C) III only.
RO
Rosalia
1 year ago
That's right! The SIMPLE IRA does not have a mandatory distribution requirement.
KA
Kati
2 years ago
Profit-sharing plan, eh? I'd like to share my profits with the IRS, but only on my own terms. This is the one for me!
RO
Rosita
1 year ago
User 3: Actually, I think it's D) All of the above have a mandatory distribution requirement.
HO
Horace
1 year ago
User 2: No, I believe it's A) I and III only.
KA
Kathryn
1 year ago
User 1: I think the answer is C) III only.
CR
Cristal
2 years ago
Roth IRA, huh? Sounds like the plan that lets me keep my money and the IRS away from it. Sign me up!
ER
Erinn
1 year ago
Yeah, Roth IRA sounds like a good option to keep your money safe.
LE
Leonida
1 year ago
I agree, Roth IRA does not have a mandatory distribution requirement.
CA
Cathrine
1 year ago
I think the answer is C) III only.
JU
Justine
2 years ago
Haha, the 401(k) plan has a mandatory distribution requirement? That's like trying to keep a teenager from a party - good luck with that!
IV
Ivette
1 year ago
User 4: So, the answer is D) All of the above have a mandatory distribution requirement.
VA
Vashti
1 year ago
User 3: Actually, both the SIMPLE IRA and the profit-sharing plan also have that requirement.
EL
Elly
1 year ago
User 2: Really? I thought only the Roth IRA had that requirement.
HE
Hester
2 years ago
User 1: Yeah, the 401(k) plan does have a mandatory distribution requirement.
KR
Kristian
2 years ago
But Roth IRA does not have a mandatory distribution requirement, so I think it's C.
MA
Mari
2 years ago
I disagree, I believe the answer is A) I and III only.
KR
Kristian
2 years ago
I think the answer is C) III only.