Question 1

A beneficiary designation can,and should,be made on your retirement accounts,life insurance policies,bank and credit union accounts,and investment accounts.

Accepted Answer

A) True 
 B)False

Question 2

For Social Security purposes,the full-benefit retirement age is 67 for those born in 1960 or later.

Accepted Answer

A) True 
 B)False

Question 3

Annuities are usually sold by insurance companies.

Accepted Answer

A) True 
 B)False

Question 4

You will earn money each year off your tax-deferred retirement accounts without having to pay taxes until the funds are withdrawn.

Accepted Answer

A) True 
 B)False

Question 5

Ben and Luke are twin brothers age 70.Both are retired and they earned roughly the same income all their working years.Ben put 12 percent of his salary into a retirement plan while employed.Luke did not.Which of the following is true about their situation today.

Accepted Answer

A) Luke collects more in Social Security benefits than Ben. 
B) Ben and Luke collect about the same level of Social Security benefits. 
C) Social Security is a smaller percentage of Ben's income than Luke's. 
D) Ben and Luke collect about the same level of Social Security benefits and Social Security is a smaller percentage of Ben's income than Luke's. 
A) Luke collects more in Social Security benefits than Ben. 
B) Ben and Luke collect about the same level of Social Security benefits. 
C) Social Security is a smaller percentage of Ben's income than Luke's. 
D) Ben and Luke collect about the same level of Social Security benefits and Social Security is a smaller percentage of Ben's income than Luke's.

Question 6

In an employer-sponsored retirement plan,the employee should make at least the contributions needed to receive the maximum employer matching contribution provided.

Accepted Answer

A) True 
 B)False

Question 7

The wealth you accumulate over your lifetime less any debts you owe is your estate.

Accepted Answer

A) True 
 B)False

Question 8

Many employers have gone to ____ in their retirement plan that allows the employer to sign up all eligible employees rather than only sign up those who say they want to do so.

Accepted Answer

A) defined-benefit initiation 
B) defined-contribution sign-up 
C) automatic enrollment 
D) blanket enrollment 
A) defined-benefit initiation 
B) defined-contribution sign-up 
C) automatic enrollment 
D) blanket enrollment

Question 9

A tax-free withdrawal occurs any time you withdraw funds from a retirement account once you reach age 65.

Accepted Answer

A) True 
 B)False

Question 10

Employer-sponsored retirement plans that have been approved by the IRS for tax-sheltering are said to be "qualified."

Accepted Answer

A) True 
 B)False

Question 11

In order to avoid income tax withholding and an early withdrawal penalty when moving retirement funds from one account to another you must

Accepted Answer

A) use a rollover IRA. 
B) make a trustee-to-trustee rollover. 
C) take possession of the funds yourself before making the move. 
D) buy an annuity with the funds. 
A) use a rollover IRA. 
B) make a trustee-to-trustee rollover. 
C) take possession of the funds yourself before making the move. 
D) buy an annuity with the funds.

Question 12

A will is a written document that directs the disposition of assets after death.

Accepted Answer

A) True 
 B)False

Question 13

Commissions are not charged when purchasing an annuity.

Accepted Answer

A) True 
 B)False

Question 14

People who have delayed planning for retirement until their late thirties or forties should begin investing ____ percent of their pretax income annually.

Accepted Answer

A) 10 to 15 
B) 20 to 25 
C) 30 to 35 
D) 40 to 45 
A) 10 to 15 
B) 20 to 25 
C) 30 to 35 
D) 40 to 45

Question 15

Employee contributions to a retirement plan are immediately vested and always belong to the employee.

Accepted Answer

A) True 
 B)False

Question 16

If you borrow funds from your employer-sponsored retirement account you must

Accepted Answer

A) pay the money back within 90 days. 
B) pay the money back within 30 days of changing employers. 
C) pay your employer interest. 
D) borrow at least 50 percent of the amount in the account. 
A) pay the money back within 90 days. 
B) pay the money back within 30 days of changing employers. 
C) pay your employer interest. 
D) borrow at least 50 percent of the amount in the account.

Question 17

Distributions from tax-sheltered retirement plans may be fully or partially taxable,depending on whether your account includes non-deductible contributions.

Accepted Answer

A) True 
 B)False

Question 18

Federal estate and gift taxes affect fewer than _____ percent of the wealthiest Americans each year.

Accepted Answer

A) 1 
B) 5 
C) 10 
D) 25 
A) 1 
B) 5 
C) 10 
D) 25

Question 19

Most types of tax-sheltered retirement accounts are tax-deferred rather than tax-free at withdrawal.

Accepted Answer

A) True 
 B)False

Question 20

When one dies without a will,this is called dying

Accepted Answer

A) escheat. 
B) intestate. 
C) testate. 
D) probate. 
A) escheat. 
B) intestate. 
C) testate. 
D) probate.

A beneficiary designation can,and should,be made on your retirement accounts,life insurance policies,bank and credit union accounts,and investment accounts.

For Social Security purposes,the full-benefit retirement age is 67 for those born in 1960 or later.

Annuities are usually sold by insurance companies.

You will earn money each year off your tax-deferred retirement accounts without having to pay taxes until the funds are withdrawn.

Ben and Luke are twin brothers age 70.Both are retired and they earned roughly the same income all their working years.Ben put 12 percent of his salary into a retirement plan while employed.Luke did not.Which of the following is true about their situation today.

In an employer-sponsored retirement plan,the employee should make at least the contributions needed to receive the maximum employer matching contribution provided.

The wealth you accumulate over your lifetime less any debts you owe is your estate.

Many employers have gone to ____ in their retirement plan that allows the employer to sign up all eligible employees rather than only sign up those who say they want to do so.

A tax-free withdrawal occurs any time you withdraw funds from a retirement account once you reach age 65.

Employer-sponsored retirement plans that have been approved by the IRS for tax-sheltering are said to be "qualified."

In order to avoid income tax withholding and an early withdrawal penalty when moving retirement funds from one account to another you must

A will is a written document that directs the disposition of assets after death.

Commissions are not charged when purchasing an annuity.

People who have delayed planning for retirement until their late thirties or forties should begin investing ____ percent of their pretax income annually.

Employee contributions to a retirement plan are immediately vested and always belong to the employee.

If you borrow funds from your employer-sponsored retirement account you must

Distributions from tax-sheltered retirement plans may be fully or partially taxable,depending on whether your account includes non-deductible contributions.

Federal estate and gift taxes affect fewer than _____ percent of the wealthiest Americans each year.

Most types of tax-sheltered retirement accounts are tax-deferred rather than tax-free at withdrawal.

When one dies without a will,this is called dying

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Filters

Exam 17: Retirement and Estate Planning

A beneficiary designation can,and should,be made on your retirement accounts,life insurance policies,bank and credit union accounts,and investment accounts.

For Social Security purposes,the full-benefit retirement age is 67 for those born in 1960 or later.

Annuities are usually sold by insurance companies.

You will earn money each year off your tax-deferred retirement accounts without having to pay taxes until the funds are withdrawn.

Ben and Luke are twin brothers age 70.Both are retired and they earned roughly the same income all their working years.Ben put 12 percent of his salary into a retirement plan while employed.Luke did not.Which of the following is true about their situation today.

In an employer-sponsored retirement plan,the employee should make at least the contributions needed to receive the maximum employer matching contribution provided.

The wealth you accumulate over your lifetime less any debts you owe is your estate.

Many employers have gone to ____ in their retirement plan that allows the employer to sign up all eligible employees rather than only sign up those who say they want to do so.

A tax-free withdrawal occurs any time you withdraw funds from a retirement account once you reach age 65.

Employer-sponsored retirement plans that have been approved by the IRS for tax-sheltering are said to be "qualified."

In order to avoid income tax withholding and an early withdrawal penalty when moving retirement funds from one account to another you must

A will is a written document that directs the disposition of assets after death.

Commissions are not charged when purchasing an annuity.

People who have delayed planning for retirement until their late thirties or forties should begin investing ____ percent of their pretax income annually.

Employee contributions to a retirement plan are immediately vested and always belong to the employee.

If you borrow funds from your employer-sponsored retirement account you must

Distributions from tax-sheltered retirement plans may be fully or partially taxable,depending on whether your account includes non-deductible contributions.

Federal estate and gift taxes affect fewer than _____ percent of the wealthiest Americans each year.

Most types of tax-sheltered retirement accounts are tax-deferred rather than tax-free at withdrawal.

When one dies without a will,this is called dying

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Filters