Massachusetts Life Producer Practice Exam

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Study for the Massachusetts Life Producer Exam. Use flashcards and multiple-choice questions with detailed hints and explanations. Prepare effectively for your exam with confidence!

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What is the rollover time limit for funds from an IRA or qualified plan?

30 days
45 days
60 days
90 days

The correct answer is: 60 days

When dealing with funds transferred from an IRA (Individual Retirement Account) or a qualified plan to another retirement account, the rollover time limit is 60 days. This means that if an individual receives a distribution from their IRA or qualified plan, they must complete the rollover by depositing those funds into another eligible retirement account within a 60-day window to avoid any tax penalties. If the rollover is not completed within this period, the distribution could be treated as taxable income, and the individual may also face early withdrawal penalties if they are under the age of 59½. This timeframe is critical because it ensures that individuals can move their retirement savings without incurring immediate tax implications, provided they adhere to the 60-day limit. Understanding this rule is essential for individuals managing their retirement funds and planning their tax strategies effectively.