Question 1

Social Security is common within many benefits plan. What type is/are the method(s) used for Social Security integration?

Accepted Answer

A) Excess 
B) Offset 
C) Excess and offset 
D) None of the above. 
A) Excess 
B) Offset 
C) Excess and offset 
D) None of the above.

Question 2

Which of the following is an optional benefit, rather than a benefit that all state programs must make available?

Accepted Answer

A) Inpatient hospital services 
B) Family planning services 
C) Home health services 
D) Respiratory care services 
A) Inpatient hospital services 
B) Family planning services 
C) Home health services 
D) Respiratory care services

Question 3

Which of the following is NOT one of the factors you should include when performing a retirement needs analysis?

Accepted Answer

A) Income needs 
B) Rates of inflation 
C) Dependents' life expectancy 
D) Number of years before retirement 
A) Income needs 
B) Rates of inflation 
C) Dependents' life expectancy 
D) Number of years before retirement

Question 4

What was the amount of aggregate IRA assets near the end of 2014?

Accepted Answer

A) $1.8 million 
B) $3.7 billion 
C) $7.3 trillion 
D) $8.9 trillion 
A) $1.8 million 
B) $3.7 billion 
C) $7.3 trillion 
D) $8.9 trillion

Question 5

Which of the following can be excluded from the evaluation of countable assets?

Accepted Answer

A) A vacation home 
B) Life insurance with a value of $2,000 
C) A burial plot 
D) Burial funds of $3,000 
A) A vacation home 
B) Life insurance with a value of $2,000 
C) A burial plot 
D) Burial funds of $3,000

Question 6

There are three investment considerations for retirement plans on the side of the client. Which item is not one of them?

Accepted Answer

A) Personal Objectives 
B) Business Objectives 
C) Family Objectives 
D) Altruistic Objectives 
A) Personal Objectives 
B) Business Objectives 
C) Family Objectives 
D) Altruistic Objectives

Question 7

Megan and John just found the perfect house and want to purchase it. However, they lack the necessary funds to do so. What may this event trigger in regards to their 403 (b) plan?

Accepted Answer

A) Residential Trigger 
B) Client in Need Trigger 
C) Hardship Withdrawal 
D) Hardship Loan Ability 
A) Residential Trigger 
B) Client in Need Trigger 
C) Hardship Withdrawal 
D) Hardship Loan Ability

Question 8

Under what circumstances are Medicare benefits not provided?

Accepted Answer

A) If an accident is the fault of the covered. 
B) If the covered is traveling outside of the United States. 
C) If the covered is hit by an uninsured individual. 
D) If the individual has never been covered by Medicare. 
A) If an accident is the fault of the covered. 
B) If the covered is traveling outside of the United States. 
C) If the covered is hit by an uninsured individual. 
D) If the individual has never been covered by Medicare.

Question 9

A couple is getting a divorce, you are discussing the division of retirement plans, how many methods will the financial planner introduce?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4

Question 10

Of all the benefits possible for a company to employ; what one has the distinguishing feature establishing separate accounts for each participant, using a hypothetical account balance?

Accepted Answer

A) Cash Balance Plan 
B) Money Purchase Plans 
C) Employee Stock Ownership Plan (ESOP) 
D) Thrift Plan 
A) Cash Balance Plan 
B) Money Purchase Plans 
C) Employee Stock Ownership Plan (ESOP) 
D) Thrift Plan

Question 11

Which of the following defines a plan that may provide tax advantages to either the plan sponsor or beneficiary, but not both?

Accepted Answer

A) Defined benefit 
B) Defined contribution 
C) Qualified plan 
D) Non-qualified plan 
A) Defined benefit 
B) Defined contribution 
C) Qualified plan 
D) Non-qualified plan

Question 12

Which of the following is NOT a requirement to qualify for Medicaid?

Accepted Answer

A) The recipient must be a U.S. citizen 
B) A non-U.S. citizen who must meet certain immigration rules 
C) The recipient must have previously worked in the state where the application is filed 
D) The recipient must have a Social Security number 
A) The recipient must be a U.S. citizen 
B) A non-U.S. citizen who must meet certain immigration rules 
C) The recipient must have previously worked in the state where the application is filed 
D) The recipient must have a Social Security number

Question 13

Craig contributes to his IRA monthly and when he has an extra lump sum of money he adds it to his account. The maximum contribution amount is $5,000; this year Craig contributed $5,500. What amount will his excess contribution penalty be?

Accepted Answer

A) 10 percent 
B) 13 percent 
C) 6 percent 
D) 3 percent 
A) 10 percent 
B) 13 percent 
C) 6 percent 
D) 3 percent

Question 14

Before you begin looking at other aspects of retirement analysis, what should you determine?

Accepted Answer

A) Rates of inflation 
B) Client's retirement goals 
C) Taxes 
D) Insurance needs 
A) Rates of inflation 
B) Client's retirement goals 
C) Taxes 
D) Insurance needs

Question 15

Which of the following types of plans allow most individuals to contribute after-tax amounts into government savings bonds and then withdraw those funds without paying tax when they retire?

Accepted Answer

A) Social Security 
B) 401k 
C) Roth IRA 
D) myRA 
A) Social Security 
B) 401k 
C) Roth IRA 
D) myRA

Question 16

Your client wants to provide a retirement plan for their employees. What factor would you not consider when determining the best plan options?

Accepted Answer

A) Personnel Characteristics 
B) Profile of employees 
C) Profile of business owner 
D) How long the business has been in operation. 
A) Personnel Characteristics 
B) Profile of employees 
C) Profile of business owner 
D) How long the business has been in operation.

Question 17

Your client is currently taxed for FICA at 7.65 percent; however, they are considering opening their own business. What would be the new tax rate for FICA?

Accepted Answer

A) There is no change for FICA as an employee or as self-employed. 
B) 32.1 Percent. 
C) 15.3 Percent. 
D) None of the above. 
A) There is no change for FICA as an employee or as self-employed. 
B) 32.1 Percent. 
C) 15.3 Percent. 
D) None of the above.

Question 18

In business succession planning, whose responsibility is it to hire a financial planner?

Accepted Answer

A) Only the business owner 
B) Only the potential successor 
C) The business owner and potential successor must hire a financial planner together 
D) The business owner, potential successor, or both together may hire a financial planner 
A) Only the business owner 
B) Only the potential successor 
C) The business owner and potential successor must hire a financial planner together 
D) The business owner, potential successor, or both together may hire a financial planner

Question 19

Which of the following was created first in the history of retirement plans?

Accepted Answer

A) Social Security 
B) Traditional IRAs 
C) Pensions for Massachusetts residents who were wounded in battle 
D) The American Express Company's private pension plan 
A) Social Security 
B) Traditional IRAs 
C) Pensions for Massachusetts residents who were wounded in battle 
D) The American Express Company's private pension plan

Question 20

Mike owns a motorcycle shop and wants to add a benefit plan for his employees. He has heard about age-weighted plans and thinks this may be the best plan. What should Mike know about age-weighted plans?

Accepted Answer

A) They must be combined with a qualified retirement plan. 
B) They are exempt from non-discrimination testing. 
C) Employer contributions must be "substantial and recurring." 
D) These plans are tested under cross-testing rules. 
A) They must be combined with a qualified retirement plan. 
B) They are exempt from non-discrimination testing. 
C) Employer contributions must be "substantial and recurring." 
D) These plans are tested under cross-testing rules.

Social Security is common within many benefits plan. What type is/are the method(s) used for Social Security integration?

Which of the following is an optional benefit, rather than a benefit that all state programs must make available?

Which of the following is NOT one of the factors you should include when performing a retirement needs analysis?

What was the amount of aggregate IRA assets near the end of 2014?

Which of the following can be excluded from the evaluation of countable assets?

There are three investment considerations for retirement plans on the side of the client. Which item is not one of them?

Megan and John just found the perfect house and want to purchase it. However, they lack the necessary funds to do so. What may this event trigger in regards to their 403 (b) plan?

Under what circumstances are Medicare benefits not provided?

A couple is getting a divorce, you are discussing the division of retirement plans, how many methods will the financial planner introduce?

Of all the benefits possible for a company to employ; what one has the distinguishing feature establishing separate accounts for each participant, using a hypothetical account balance?

Which of the following defines a plan that may provide tax advantages to either the plan sponsor or beneficiary, but not both?

Which of the following is NOT a requirement to qualify for Medicaid?

Craig contributes to his IRA monthly and when he has an extra lump sum of money he adds it to his account. The maximum contribution amount is $5,000; this year Craig contributed $5,500. What amount will his excess contribution penalty be?

Before you begin looking at other aspects of retirement analysis, what should you determine?

Which of the following types of plans allow most individuals to contribute after-tax amounts into government savings bonds and then withdraw those funds without paying tax when they retire?

Your client wants to provide a retirement plan for their employees. What factor would you not consider when determining the best plan options?

Your client is currently taxed for FICA at 7.65 percent; however, they are considering opening their own business. What would be the new tax rate for FICA?

In business succession planning, whose responsibility is it to hire a financial planner?

Which of the following was created first in the history of retirement plans?

Mike owns a motorcycle shop and wants to add a benefit plan for his employees. He has heard about age-weighted plans and thinks this may be the best plan. What should Mike know about age-weighted plans?

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Exam 6: Retirement Savings and Income Planning

Social Security is common within many benefits plan. What type is/are the method(s) used for Social Security integration?

Which of the following is an optional benefit, rather than a benefit that all state programs must make available?

Which of the following is NOT one of the factors you should include when performing a retirement needs analysis?

What was the amount of aggregate IRA assets near the end of 2014?

Which of the following can be excluded from the evaluation of countable assets?

There are three investment considerations for retirement plans on the side of the client. Which item is not one of them?

Megan and John just found the perfect house and want to purchase it. However, they lack the necessary funds to do so. What may this event trigger in regards to their 403 (b) plan?

Under what circumstances are Medicare benefits not provided?

A couple is getting a divorce, you are discussing the division of retirement plans, how many methods will the financial planner introduce?

Of all the benefits possible for a company to employ; what one has the distinguishing feature establishing separate accounts for each participant, using a hypothetical account balance?

Which of the following defines a plan that may provide tax advantages to either the plan sponsor or beneficiary, but not both?

Which of the following is NOT a requirement to qualify for Medicaid?

Craig contributes to his IRA monthly and when he has an extra lump sum of money he adds it to his account. The maximum contribution amount is $5,000; this year Craig contributed $5,500. What amount will his excess contribution penalty be?

Before you begin looking at other aspects of retirement analysis, what should you determine?

Which of the following types of plans allow most individuals to contribute after-tax amounts into government savings bonds and then withdraw those funds without paying tax when they retire?

Your client wants to provide a retirement plan for their employees. What factor would you not consider when determining the best plan options?

Your client is currently taxed for FICA at 7.65 percent; however, they are considering opening their own business. What would be the new tax rate for FICA?

In business succession planning, whose responsibility is it to hire a financial planner?

Which of the following was created first in the history of retirement plans?

Mike owns a motorcycle shop and wants to add a benefit plan for his employees. He has heard about age-weighted plans and thinks this may be the best plan. What should Mike know about age-weighted plans?

Education Planning

Education Planning

Estate Planning

Estate Planning

General Principles of Financial Planning

General Principles of Financial Planning

Investment Planning

Investment Planning

Professional Conduct and Regulation

Professional Conduct and Regulation

Retirement Savings and Income Planning

Risk Management and Insurance Planning

Risk Management and Insurance Planning

Tax Planning

Tax Planning

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