Introduction

Welcome to Retirement Plans, where you'll learn the key plan types, tax rules, and contribution limits that investment advisers need to know.

Exam Weight: Part of 30 questions

What You'll Learn

In this unit, you'll cover:

• Individual Retirement Accounts (IRAs): Traditional vs. Roth tax treatment, contribution limits, Required Minimum Distribution (RMD) rules, and Roth conversions
• Solo 401(k) Plans: Retirement savings for self-employed individuals, combining employee deferrals with employer contributions
• Qualified Retirement Plans: Employer-sponsored 401(k) and 403(b) plans, their tax benefits, and Employee Retirement Income Security Act (ERISA) requirements
• Nonqualified Retirement Plans: 457(b) deferred compensation, executive bonus plans, and the tradeoffs of flexibility vs. creditor protection

Why This Matters

Investment advisers must understand retirement plan structures to recommend appropriate savings strategies for different client situations. The exam tests your ability to distinguish between plan types, identify who is eligible for each, and recognize key tax consequences. The differences between qualified and nonqualified plans are frequently tested, along with the unique features of 457(b) plans that set them apart from other employer-sponsored options.

Let's start with Individual Retirement Accounts, the most common personal retirement savings tool.