Question 1

What are the tax characteristics of qualified retirement plans?

Accepted Answer

A)  Employers can deduct the contributions. 
B)  Employees do not pay taxes on the employer contributions until funds are withdrawn. 
C)  Employee contributions may or may not reduce taxable income in the year made. 
D)  Earnings on both employee and employer contributions are tax-deferred. 
E)  All of the above are characteristics. 
A)  Employers can deduct the contributions. 
B)  Employees do not pay taxes on the employer contributions until funds are withdrawn. 
C)  Employee contributions may or may not reduce taxable income in the year made. 
D)  Earnings on both employee and employer contributions are tax-deferred. 
E)  All of the above are characteristics.

Question 2

Dr.Johnson is surgeon at University Hospital.She will pay ____ taxes on all of her $170,000 salary.

Accepted Answer

A)  Social Security 
B)  Medicare 
C)  Medicaid 
D)  a and b 
E)  a, b, and c 
A)  Social Security 
B)  Medicare 
C)  Medicaid 
D)  a and b 
E)  a, b, and c

Question 3

The two most common sources of retirement income for most people are social security and pensions.

Accepted Answer

A) True 
 B)False

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-With a life annuity,period certain,a payment will be made for a stated period of time [only to the annuitant if she lives | to someone else if the annuitant dies].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

You will receive the largest monthly payment under an annuity contract when the selected payment option is the

Accepted Answer

A)  life annuity with no refund. 
B)  life annuity, period certain. 
C)  refund annuity. 
D)  annuity certain. 
E)  temporary life annuity. 
A)  life annuity with no refund. 
B)  life annuity, period certain. 
C)  refund annuity. 
D)  annuity certain. 
E)  temporary life annuity.

Question 6

If you withdraw funds from a pension plan before age 59 ¹/₂ ,you will have to pay a ____ federal income tax penalty.

Accepted Answer

A)  5%. 
B)  10% 
C)  15% 
D)  20% 
E)  25% 
A)  5%. 
B)  10% 
C)  15% 
D)  20% 
E)  25%

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Social security alone [will | will not] provide a comfortable standard of living at retirement.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

Earned income has accounted for a growing amount of total retirement income.

Accepted Answer

A) True 
 B)False

Question 9

Annuities may provide survivor's benefits.

Accepted Answer

A) True 
 B)False

Question 10

The need for retirement planning is increased by the uncertainties of

Accepted Answer

A)  inflation. 
B)  social security benefits. 
C)  the assets you hold. 
D)  your pension benefits. 
E)  all of these. 
A)  inflation. 
B)  social security benefits. 
C)  the assets you hold. 
D)  your pension benefits. 
E)  all of these.

Question 11

A large selection of investment types can qualify as IRA investments.

Accepted Answer

A) True 
 B)False

Question 12

Of the following survivors of a fully insured worker,____ would not be eligible for social security benefits.

Accepted Answer

A)  dependent children 
B)  spouse age 47, no children 
C)  spouse age 65, with dependent children 
D)  spouse age 65, no children 
E)  spouse age 26, with dependent children 
A)  dependent children 
B)  spouse age 47, no children 
C)  spouse age 65, with dependent children 
D)  spouse age 65, no children 
E)  spouse age 26, with dependent children

Question 13

Social security benefits alone can usually fund a comfortable retirement.

Accepted Answer

A) True 
 B)False

Question 14

There are early withdrawal penalties for all of the following except

Accepted Answer

A)  Roth IRA contributions. 
B)  Traditional IRA contributions. 
C)  Annuity contributions. 
D)  SEP contributions. 
E)  401(k) contributions. 
A)  Roth IRA contributions. 
B)  Traditional IRA contributions. 
C)  Annuity contributions. 
D)  SEP contributions. 
E)  401(k) contributions.

Question 15

A ____ plan combines some of the features of a defined contribution plan with features of a defined benefit plan to produce a plan that is more portable than a traditional defined benefit plan.

Accepted Answer

A)  SEP 
B)  Roth IRA 
C)  cash balance 
D)  profit sharing 
E)  thrift and savings 
A)  SEP 
B)  Roth IRA 
C)  cash balance 
D)  profit sharing 
E)  thrift and savings

Question 16

Earnings limitations on social security benefits cease at age

Accepted Answer

A)  60. 
B)  62. 
C)  65. 
D)  70. 
E)  72. 
A)  60. 
B)  62. 
C)  65. 
D)  70. 
E)  72.

Question 17

Mary Ann contributed $5,000 to her 401(k)plan.If Mary Ann is in the 15% marginal tax bracket,this retirement contribution saved her approximately ____ in federal income taxes.

Accepted Answer

A)  $5,000 
B)  $4,250 
C)  $2,500 
D)  $ 750 
E)  $ 0 
A)  $5,000 
B)  $4,250 
C)  $2,500 
D)  $ 750 
E)  $ 0

Question 18

Qualified retirement plans provide employees with tax benefits.

Accepted Answer

A) True 
 B)False

Question 19

Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.

Accepted Answer

A) True 
 B)False

Question 20

ERISA was passed to protect employees participating in private employer retirement plans.

Accepted Answer

A) True 
 B)False

What are the tax characteristics of qualified retirement plans?

Dr.Johnson is surgeon at University Hospital.She will pay ____ taxes on all of her $170,000 salary.

The two most common sources of retirement income for most people are social security and pensions.

You will receive the largest monthly payment under an annuity contract when the selected payment option is the

If you withdraw funds from a pension plan before age 59 ¹/₂ ,you will have to pay a ____ federal income tax penalty.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Social security alone [will | will not] provide a comfortable standard of living at retirement.

Earned income has accounted for a growing amount of total retirement income.

Annuities may provide survivor's benefits.

The need for retirement planning is increased by the uncertainties of

A large selection of investment types can qualify as IRA investments.

Of the following survivors of a fully insured worker,____ would not be eligible for social security benefits.

Social security benefits alone can usually fund a comfortable retirement.

There are early withdrawal penalties for all of the following except

A ____ plan combines some of the features of a defined contribution plan with features of a defined benefit plan to produce a plan that is more portable than a traditional defined benefit plan.

Earnings limitations on social security benefits cease at age

Mary Ann contributed $5,000 to her 401(k)plan.If Mary Ann is in the 15% marginal tax bracket,this retirement contribution saved her approximately ____ in federal income taxes.

Qualified retirement plans provide employees with tax benefits.

Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.

ERISA was passed to protect employees participating in private employer retirement plans.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters

Exam 14: Planning for Retirement

What are the tax characteristics of qualified retirement plans?

Dr.Johnson is surgeon at University Hospital.She will pay ____ taxes on all of her $170,000 salary.

The two most common sources of retirement income for most people are social security and pensions.

You will receive the largest monthly payment under an annuity contract when the selected payment option is the

If you withdraw funds from a pension plan before age 59 ¹/₂ ,you will have to pay a ____ federal income tax penalty.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Social security alone [will | will not] provide a comfortable standard of living at retirement.

Earned income has accounted for a growing amount of total retirement income.

Annuities may provide survivor's benefits.

The need for retirement planning is increased by the uncertainties of

A large selection of investment types can qualify as IRA investments.

Of the following survivors of a fully insured worker,____ would not be eligible for social security benefits.

Social security benefits alone can usually fund a comfortable retirement.

There are early withdrawal penalties for all of the following except

A ____ plan combines some of the features of a defined contribution plan with features of a defined benefit plan to produce a plan that is more portable than a traditional defined benefit plan.

Earnings limitations on social security benefits cease at age

Mary Ann contributed $5,000 to her 401(k)plan.If Mary Ann is in the 15% marginal tax bracket,this retirement contribution saved her approximately ____ in federal income taxes.

Qualified retirement plans provide employees with tax benefits.

Roth IRAs are the only IRAs that have the potential to produce tax-free earnings.

ERISA was passed to protect employees participating in private employer retirement plans.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters