Question 1

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?

Accepted Answer

A) Money Purchase Plan 
B) Target Benefit 
C) Both A and B 
D) Neither A nor B 
A) Money Purchase Plan 
B) Target Benefit 
C) Both A and B 
D) Neither A nor B

Question 2

Employer contributions are based on compensation for employer sponsored money purchase plans. What is not included in the definition of compensation?

Accepted Answer

A) Salary 
B) Bonuses 
C) Both A and B. 
D) Neither A or B. 
A) Salary 
B) Bonuses 
C) Both A and B. 
D) Neither A or B.

Question 3

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

Accepted Answer

A) Profit Sharing 
B) Money Purchase Plans 
C) Age-weighted 
D) 401 (k) Plans 
A) Profit Sharing 
B) Money Purchase Plans 
C) Age-weighted 
D) 401 (k) Plans

Question 4

What is the process by which the party with more knowledge actively conveys information to the party with less knowledge?

Accepted Answer

A) Mind meld 
B) Signaling 
C) Disclosing 
D) Training 
A) Mind meld 
B) Signaling 
C) Disclosing 
D) Training

Question 5

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 6

Beth is the most optimistic and altruistic client you've ever had. She saves 10 percent of her income weekly and her living expenses only take-up 30 percent of her pay; the rest is given to charity. She wants to retire early and maintain her current lifestyle. What option would you suggest to have her save more income to meet her financial needs?

Accepted Answer

A) Become fully insured. 
B) Take a second job. 
C) Reduce charitable contributions. 
D) Inform her that retiring early and maintaining her lifestyle is perfectly doable. 
A) Become fully insured. 
B) Take a second job. 
C) Reduce charitable contributions. 
D) Inform her that retiring early and maintaining her lifestyle is perfectly doable.

Question 7

Nonqualified vesting schedules pertain to whom within a company?

Accepted Answer

A) Day laborers 
B) Hourly workers 
C) Owners 
D) Executives 
A) Day laborers 
B) Hourly workers 
C) Owners 
D) Executives

Question 8

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:

Accepted Answer

A) One-tiered 
B) Two-tiered 
C) Three-tiered 
D) Four-tiered 
A) One-tiered 
B) Two-tiered 
C) Three-tiered 
D) Four-tiered

Question 9

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?

Accepted Answer

A) IRA Intervention 
B) Affiliated Service Groups 
C) Corporate Affiliation Practices 
D) Service Unity Groups 
A) IRA Intervention 
B) Affiliated Service Groups 
C) Corporate Affiliation Practices 
D) Service Unity Groups

Question 10

The Pension Benefit Guaranty Corporation may terminate a plan for what reason (s)?

Accepted Answer

A) Plan has too many members. 
B) Plan has too many managers. 
C) Plan has become top-heavy. 
D) None of the above. 
A) Plan has too many members. 
B) Plan has too many managers. 
C) Plan has become top-heavy. 
D) None of the above.

Question 11

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 12

Who would be a part of a control group in a company?

Accepted Answer

A) Owners 
B) Wives 
C) Employees 
D) All of the above 
A) Owners 
B) Wives 
C) Employees 
D) All of the above

Question 13

Properly planning for Medicaid involves understanding which of the following?

Accepted Answer

A) Tax planning 
B) Retirement savings and income planning 
C) Estate planning 
D) All of the above 
A) Tax planning 
B) Retirement savings and income planning 
C) Estate planning 
D) All of the above

Question 14

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 15

What is a factor that you and the client CANNOT control?

Accepted Answer

A) Age at retirement 
B) Returns on investments 
C) Inflation rates 
D) Income and expense needs 
A) Age at retirement 
B) Returns on investments 
C) Inflation rates 
D) Income and expense needs

Question 16

Most family business owners prefer to do what?

Accepted Answer

A) Keep the business within the family 
B) Sell the business to a large corporation at retirement 
C) Close the business at retirement 
D) Sell the business to another small business owner at retirement 
A) Keep the business within the family 
B) Sell the business to a large corporation at retirement 
C) Close the business at retirement 
D) Sell the business to another small business owner at retirement

Question 17

What is screening?

Accepted Answer

A) A process where an uninformed party requests additional information from the informed party 
B) The active conveyance of information by the party with more knowledge 
C) Creating a filter of transferring knowledge by using a third party 
D) Performing background checks on another party 
A) A process where an uninformed party requests additional information from the informed party 
B) The active conveyance of information by the party with more knowledge 
C) Creating a filter of transferring knowledge by using a third party 
D) Performing background checks on another party

Question 18

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 19

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 20

When it comes to retirement plans, what is true of IRC Section 72 (t) for tax-advantaged personal retirement plans?

Accepted Answer

A) The owner can remove funds at any time. 
B) Early withdrawal has a 10 percent penalty. 
C) There is no triggering event needed for withdraw. 
D) All of the above. 
A) The owner can remove funds at any time. 
B) Early withdrawal has a 10 percent penalty. 
C) There is no triggering event needed for withdraw. 
D) All of the above.

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?

Employer contributions are based on compensation for employer sponsored money purchase plans. What is not included in the definition of compensation?

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

What is the process by which the party with more knowledge actively conveys information to the party with less knowledge?

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

Nonqualified vesting schedules pertain to whom within a company?

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:

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?

The Pension Benefit Guaranty Corporation may terminate a plan for what reason (s)?

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

Who would be a part of a control group in a company?

Properly planning for Medicaid involves understanding which of the following?

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?

What is a factor that you and the client CANNOT control?

Most family business owners prefer to do what?

What is screening?

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

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?

When it comes to retirement plans, what is true of IRC Section 72 (t) for tax-advantaged personal retirement plans?

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Education Planning

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Estate Planning

General Principles of Financial Planning

General Principles of Financial Planning

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Professional Conduct and Regulation

Retirement Savings and Income Planning

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Risk Management and Insurance Planning

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Exam 6: Retirement Savings and Income Planning

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?

Employer contributions are based on compensation for employer sponsored money purchase plans. What is not included in the definition of compensation?

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

What is the process by which the party with more knowledge actively conveys information to the party with less knowledge?

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

Nonqualified vesting schedules pertain to whom within a company?

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:

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?

The Pension Benefit Guaranty Corporation may terminate a plan for what reason (s)?

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

Who would be a part of a control group in a company?

Properly planning for Medicaid involves understanding which of the following?

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?

What is a factor that you and the client CANNOT control?

Most family business owners prefer to do what?

What is screening?

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

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?

When it comes to retirement plans, what is true of IRC Section 72 (t) for tax-advantaged personal retirement 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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