Exam 6: Retirement Savings and Income Planning

Rick says that his employees are complaining that their benefits plan isn't fair to everyone working in the company. To check if this is true, what should be recommended for Rick to do?

What usually determines the best successor to a business?

What type of qualified plan must be "substantial and recurring" with non-discriminatory allocation of contributions?

What percentage of family businesses successfully transition from the first generation of ownership to the second generation?

Seth wishes to circumvent the controlled group rules set forth in ERISA by opening a first service organization offering engineering services as an "A" organization. What is concept is Seth attempting to apply?

What type of qualified plan limits sponsored company stock to 10 percent and generally does not produce large contributions or deductions for older employees?

Your new client owns her own company and is 10 years from retiring, what would be the best plan for the client to consider?

What are the major types of qualified plan categories?

There are tax consequences for committing a prohibitive transaction between a retirement plan and a disqualified persons or party; however, there are exemptions under the Prohibited Transactions Rules. Which is not an exception?

Mitch is happy to know there will be some funds coming in the house for his children after his wife passed-away after 11 years of marriage. But the monies are not really enough to maintain their standard of living. What should Mitch be informed of?

Which of the following is a decision required during the distribution phase?

Most family business owners prefer to do what?

Nonqualified vesting schedules pertain to whom within a company?

Mary wants to take a lump sum payout from one of her three benefits plans. Which plan can she use the lump sum distribution option?

Martha and Matt are retiring in 30 years and they want to make sure they have enough funds to maintain their lifestyle until they pass away. As a financial planner you know a comprehensive income-need analysis must be calculated. What calculation type would you not take into consideration for the analysis?

The Internal Revenue Code excludes individual from withdrawal penalties. Which item is not excluded?

Fred's company has committed a prohibited transaction by lending money from the company's retirement plan. The tax consequences that will be imposed are:

What is the amount of countable assets a married couple can retain when applying for Medicaid?

Mitch is a stay-at-home Dad with 8 year old twins. His wife just passed-away and he is not sure what to do with his financial situation. There are some savings from his wife's law firm and Mitch will receive monies from the firm as part owner. What should you inform Mitch of?

John has broken his tow and insists he can no longer work - ever! He insists you help him start getting disability payments. You try to explain to John that: