Exam 17: Retirement and Estate Planning

Self-employed workers pay a Social Security tax rate that is twice that paid by employees because contributions of self-employed workers are not matched by an employer.

____ plans are riskier than other employer-sponsored plans due to their lack of investment diversification.

The Pension Benefit Guarantee Corporation (PBGC) covers only ____ pension plans.

Electing to receive Social Security retirement benefits prior to age 67 increases the monthly benefit received.

____ is the time in life when the major of income changes from earned income to investments,Social Security benefits and part-time work.

Employees of small firms are more likely to be covered by pension plans than employees of large firms.

A special catch-up provision permits workers age 50 or older to contribute an additional ____ to most employer-sponsored plans.

Which of the following would be considered an estate planning mistake?

People who expect to live for a longer period than the average expectancy may achieve a better financial position by taking employer pension benefits early.

To receive Social Security benefits,a person must have earned a specified number of credits.

Contributions of up to $5,500 annually to Roth IRAs are tax deductible,and funds in the account grow tax free.

All of your employment income is subject to the FICA tax.

The amount you will receive from Social Security at your full-benefit retirement age

The maximum amount of income the typical employee may contribute to an employer-sponsored 401(k),403(b),or 457 plan is currently

The salary-reduction pension plan specifically designed for employers with 100 or fewer employees is called a

People receiving either survivor's or disability benefits from an employer are entitled to an amount equal to the full retirement amount.

Living trusts take effect during the grantor's lifetime.

When you open a retirement account,you must sign a beneficiary designation form.This designation does not take precedence over provisions stated in a will.

Transfers at the death of a spouse usually are very uncomplicated because spouses generally own property together under

When one dies without a will,the judge who probates the estate has total control over the distribution of property.