Pennsylvania Life and Health Insurance Exam Practice Question
Which of the following is considered a tax-qualified retirement plan?
Correct Answer: C
Rationale: A tax-qualified retirement plan must meet specific IRS requirements, allowing for tax benefits.
C: Defined contribution plans, such as 401(k)s, are tax-qualified as they allow for tax-deferred contributions and earnings until withdrawal.
A: Executive deferred compensation plans are not tax-qualified; they often involve non-qualified arrangements that do not receive the same tax advantages.
B: Equity indexed products are typically investment vehicles rather than retirement plans and may not meet tax-qualified criteria.
D: Installment refund options refer to payout methods and do not represent a type of retirement plan, thus lacking tax-qualified status.
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