Series65 MOD 7 Annuities And Retirement Plans

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Series65ForFab
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292325
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Series65 MOD 7 Annuities And Retirement Plans
Updated:
2015-02-15 12:17:59
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Series65
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Annuities And Retirement Plans
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  1. A DEFINED BENEFIT PLAN is a:
    pension plan in which the benefit is determined based on the participant's current compensation
  2. DEFINED CONTRIBUTION PLANS allow employers and employees to:
    establish retirement savings accounts for each individual employee
  3. PROFIT-SHARING PLANS allow companies to:
    establish an employee retirement plan with the flexibility to vary the contributions according to the profitability of the company
  4. The nonprofit organizations allowed to have 403 (B) PLANS include:
    • Public schools
    • Colleges and universities
    • Churches and public hospitals
    • 501(c)(3) charities
  5. The investments allowed with a 403(b) plan are limited to low-risk investments, as per ERISA, including:
    • Annuities
    • variable annuities
    • Mutual funds
  6. Keogh plans _____ be established for self-employed individuals as a retirement plan.
    • can
    • The maximum deductible contribution that can be made per employee is $51,000 per year or 25% of earned income, whichever is less.
  7. The following investments are allowed in IRA accounts:
    • Equities
    • Bonds
    • Mutual funds
    • Covered calls
    • Gold and silver coins minted in the U.S. or by U.S. states
    • High quality gold, silver, platinum, and palladium bullion
  8. The following investments are not allowed in IRA accounts:
    • Short stock
    • Long stock purchased on margin
    • Short puts
    • Real estate
    • Certain collectibles (works of art, rugs, antiques, metals, gems, stamps, foreign
    • coins, and alcoholic beverages)
  9. A ___% penalty is charged for any overpayment into an IRA, and the amount of overpayment will be taxed every year until it is withdrawn
    6%
  10. define COVERDELL EDUCATION SAVINGS PLAN:
    • Total contributions can't more than $2,000 per year per child under age 18.
    • The contribution amounts are not deductible
  11. Investment Policy Statements (IPS) are required for all:
    529 plans
  12. ERISA specifically requires that all private sector retirement plans establish and provide for fiduciaries who:
    Control and manage the operation of the plan
  13. ERISA protects employees of all “private sector” pension plans, such as:
    • Defined benefit and defined contribution plans
    • Keogh plans
    • Profit-sharing plans
    • 401(k) plans
    • “ERISA Covered” 403(b) plans
  14. ERISA does not cover:
    • Plans by the federal government
    • 403(b) plans *excp
    • Municipalities with 457 plans
  15. In retirement planning, an Investment advisers must first identify their client’s ________
    • CAPITAL NEEDS REQUIREMENT
    • This process determines the target amount of money that is needed and paid out in the future.
  16. define a money purchase plan:
    very similar to a profit-sharing plan; however,the employer is obligated to contribute annually to funding employee accounts, regardless of the company’s profits
  17. Can stocks be purchased in a TSA (tax-Sheltered Annuity)plans?
    No
  18. Define SIMPLE 401k:
    • allow employees to contribute up to $12,000 per year
    • Employer MUST make a matching contribution up to 3% of each employee’s pay or
    • non-elective contribution of 2% of each eligible employee’s pay.
    • All contributions are immediately 100% vested to the employee.
  19. What is the maximum contribution that can be made in any one year to a 529 college savings plan without a single contributor incurring a gift tax?
    (A) $3,000
    (B) $70,000
    (C) $265,000
    (D) $14,000
    (B) $70,000
    (this multiple choice question has been scrambled)

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