Question 1

An SEP-IRA is intended for taxpayers who work for large corporations.

Accepted Answer

A) True 
 B)False

Question 2

The worst aspect of simply taking the money out of an employer-based retirement plan when changing jobs is

Accepted Answer

A) the taxes you must pay. 
B) the rollover penalty. 
C) having to do the paperwork. 
D) the ultimately lower retirement nest egg you will have. 
A) the taxes you must pay. 
B) the rollover penalty. 
C) having to do the paperwork. 
D) the ultimately lower retirement nest egg you will have.

Question 3

It is okay to wait until retirement to decide whether or not to buy an annuity with a portion of your retirement funds.

Accepted Answer

A) True 
 B)False

Question 4

The maximum yearly contribution you may make to an IRA is $5,500.

Accepted Answer

A) True 
 B)False

Question 5

When a Rollover IRA is used to shelter lump-sum distributions from employer-sponsored retirement accounts,there

Accepted Answer

A) is a $25,000-a-year limitation. 
B) will be no tax liability, but there will be a 10 percent penalty on the funds put in the IRA. 
C) will be no 10 percent penalty, but there will be a tax liability on the distribution put in the IRA. 
D) is no immediate tax liability or penalty on the funds put in the IRA. 
A) is a $25,000-a-year limitation. 
B) will be no tax liability, but there will be a 10 percent penalty on the funds put in the IRA. 
C) will be no 10 percent penalty, but there will be a tax liability on the distribution put in the IRA. 
D) is no immediate tax liability or penalty on the funds put in the IRA.

Question 6

The grantor is the person designated to control and manage any assets in a trust.

Accepted Answer

A) True 
 B)False

Question 7

Sally put $4,000 in her traditional IRA this year.If Sally is in the 25 percent marginal tax bracket,the government actually contributed ____ of that amount for her.

Accepted Answer

A) $1,000 
B) $3,000 
C) $0 
D) $4,000 
A) $1,000 
B) $3,000 
C) $0 
D) $4,000

Question 8

When only the employer,not the employee,is allowed to contribute to the employees' retirement account the plan is said to be

Accepted Answer

A) tax-free. 
B) after-tax. 
C) contributory. 
D) noncontributory. 
A) tax-free. 
B) after-tax. 
C) contributory. 
D) noncontributory.

Question 9

When you write your will you are named in the will as the executor.

Accepted Answer

A) True 
 B)False

Question 10

Rollover IRAs can be used to shelter funds being distributed from other types of retirement plans.

Accepted Answer

A) True 
 B)False

Question 11

With most tax-sheltered accounts other than Roth-type accounts taxes are merely deferred rather than eliminated altogether.

Accepted Answer

A) True 
 B)False

Question 12

There are limits on the maximum amount of income an employee may contribute to an employer-sponsored plan.

Accepted Answer

A) True 
 B)False

Question 13

Women are less likely to get retirement benefits from their employers.

Accepted Answer

A) True 
 B)False

Question 14

What percentage of people age 65-69 are still working.

Accepted Answer

A) 10 
B) 30 
C) 50 
D) 70 
A) 10 
B) 30 
C) 50 
D) 70

Question 15

Divorce terminates an ex-spouse's status as the named beneficiary of a retirement plan or a life insurance policy.

Accepted Answer

A) True 
 B)False

Question 16

The funds contributed into a defined-contribution plan are held by the employer until withdrawn by the employee.

Accepted Answer

A) True 
 B)False

Question 17

You can set up your retirement plan account to go to a designated heir upon your death outside of your will by completing a

Accepted Answer

A) grant-in-lieu of will form. 
B) automatic death transfer form. 
C) beneficiary designation form. 
D) profit-sharing form. 
A) grant-in-lieu of will form. 
B) automatic death transfer form. 
C) beneficiary designation form. 
D) profit-sharing form.

Question 18

A testamentary trust becomes effective upon the death of the beneficiary.

Accepted Answer

A) True 
 B)False

Question 19

If all the funds are removed or transferred from a retirement account at one time after changing employers or taking retirement,the disbursement is called a lump-sum distribution.

Accepted Answer

A) True 
 B)False

Question 20

The primary purpose of the Employee Retirement Income Security Act (ERISA) is to

Accepted Answer

A) regulate employer-sponsored pension plans. 
B) regulate employer-sponsored pension plans 
C) collect taxes on retirement benefits. 
D) regulate employer-sponsored pension plans and require employer-sponsored pension plans for large companies. 
A) regulate employer-sponsored pension plans. 
B) regulate employer-sponsored pension plans 
C) collect taxes on retirement benefits. 
D) regulate employer-sponsored pension plans and require employer-sponsored pension plans for large companies.

An SEP-IRA is intended for taxpayers who work for large corporations.

The worst aspect of simply taking the money out of an employer-based retirement plan when changing jobs is

It is okay to wait until retirement to decide whether or not to buy an annuity with a portion of your retirement funds.

The maximum yearly contribution you may make to an IRA is $5,500.

When a Rollover IRA is used to shelter lump-sum distributions from employer-sponsored retirement accounts,there

The grantor is the person designated to control and manage any assets in a trust.

Sally put $4,000 in her traditional IRA this year.If Sally is in the 25 percent marginal tax bracket,the government actually contributed ____ of that amount for her.

When only the employer,not the employee,is allowed to contribute to the employees' retirement account the plan is said to be

When you write your will you are named in the will as the executor.

Rollover IRAs can be used to shelter funds being distributed from other types of retirement plans.

With most tax-sheltered accounts other than Roth-type accounts taxes are merely deferred rather than eliminated altogether.

There are limits on the maximum amount of income an employee may contribute to an employer-sponsored plan.

Women are less likely to get retirement benefits from their employers.

What percentage of people age 65-69 are still working.

Divorce terminates an ex-spouse's status as the named beneficiary of a retirement plan or a life insurance policy.

The funds contributed into a defined-contribution plan are held by the employer until withdrawn by the employee.

You can set up your retirement plan account to go to a designated heir upon your death outside of your will by completing a

A testamentary trust becomes effective upon the death of the beneficiary.

If all the funds are removed or transferred from a retirement account at one time after changing employers or taking retirement,the disbursement is called a lump-sum distribution.

The primary purpose of the Employee Retirement Income Security Act (ERISA) is to

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

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Exam 17: Retirement and Estate Planning

An SEP-IRA is intended for taxpayers who work for large corporations.

The worst aspect of simply taking the money out of an employer-based retirement plan when changing jobs is

It is okay to wait until retirement to decide whether or not to buy an annuity with a portion of your retirement funds.

The maximum yearly contribution you may make to an IRA is $5,500.

When a Rollover IRA is used to shelter lump-sum distributions from employer-sponsored retirement accounts,there

The grantor is the person designated to control and manage any assets in a trust.

Sally put $4,000 in her traditional IRA this year.If Sally is in the 25 percent marginal tax bracket,the government actually contributed ____ of that amount for her.

When only the employer,not the employee,is allowed to contribute to the employees' retirement account the plan is said to be

When you write your will you are named in the will as the executor.

Rollover IRAs can be used to shelter funds being distributed from other types of retirement plans.

With most tax-sheltered accounts other than Roth-type accounts taxes are merely deferred rather than eliminated altogether.

There are limits on the maximum amount of income an employee may contribute to an employer-sponsored plan.

Women are less likely to get retirement benefits from their employers.

What percentage of people age 65-69 are still working.

Divorce terminates an ex-spouse's status as the named beneficiary of a retirement plan or a life insurance policy.

The funds contributed into a defined-contribution plan are held by the employer until withdrawn by the employee.

You can set up your retirement plan account to go to a designated heir upon your death outside of your will by completing a

A testamentary trust becomes effective upon the death of the beneficiary.

If all the funds are removed or transferred from a retirement account at one time after changing employers or taking retirement,the disbursement is called a lump-sum distribution.

The primary purpose of the Employee Retirement Income Security Act (ERISA) is to

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