Question 1

The typical early withdrawal penalty for taking money out of a retirement account early for unapproved reasons is.

Accepted Answer

A) 10 percent. 
B) 20 percent. 
C) your marginal tax rate. 
D) 30 percent. 
A) 10 percent. 
B) 20 percent. 
C) your marginal tax rate. 
D) 30 percent.

Question 2

The majority of new employer-sponsored pension plans are defined-benefit plans.

Accepted Answer

A) True 
 B)False

Question 3

When purchasing an annuity for retirement purposes,

Accepted Answer

A) there will generally be no commissions. 
B) a series of payments will be received at stated intervals. 
C) the investment should be made through your IRA account. 
D) the decision should be made early in life. 
A) there will generally be no commissions. 
B) a series of payments will be received at stated intervals. 
C) the investment should be made through your IRA account. 
D) the decision should be made early in life.

Question 4

Young workers can afford to be in higher risk investment options with their retirement accounts.

Accepted Answer

A) True 
 B)False

Question 5

Your preferences for funeral and burial,obituary and location of important documents can best be communicated in your

Accepted Answer

A) letter of last instructions. 
B) codicil. 
C) will. 
D) trust. 
A) letter of last instructions. 
B) codicil. 
C) will. 
D) trust.

Question 6

A salary-reduction plan has tax benefits to the employee because the contributed income is not included in the employee's salary.

Accepted Answer

A) True 
 B)False

Question 7

If you want to maintain the right to change the terms or cancel a trust that you have created you should use an irrevocable trust.

Accepted Answer

A) True 
 B)False

Question 8

Trusts can be used to transfer assets outside of probate.

Accepted Answer

A) True 
 B)False

Question 9

____ means that on termination of employment,an employee can keep his or her savings in a tax-sheltered account by transferring the retirement funds from the employer's account to another account without penalty.

Accepted Answer

A) ERISA 
B) Rollover 
C) Portability 
D) Vesting 
A) ERISA 
B) Rollover 
C) Portability 
D) Vesting

Question 10

If you inherit a 401(k) retirement account from someone other than a spouse you can avoid taxes by transferring the balance directly into an inherited IRA in your name.

Accepted Answer

A) True 
 B)False

Question 11

Those who have delayed planning for retirement until their late thirties or forties should begin investing at least 35 percent annually in an effort to catch up.

Accepted Answer

A) True 
 B)False

Question 12

The amount of one's retirement account value depends directly on the success of investments in the retirement fund if your retirement account is a ____ retirement plan.

Accepted Answer

A) defined-benefit 
B) defined-contribution 
C) cash-balance 
D) vested 
A) defined-benefit 
B) defined-contribution 
C) cash-balance 
D) vested

Question 13

A cash-balance plan is a defined-benefit plan that gives each participant an interest-earning account credited with a percentage of pay on a monthly basis.

Accepted Answer

A) True 
 B)False

Question 14

A matching contribution can only be partial.

Accepted Answer

A) True 
 B)False

Question 15

In ____ plans,employees control the assets in their accounts are invested.

Accepted Answer

A) defined-benefit 
B) defined-contribution 
C) pension 
D) cash-balance 
A) defined-benefit 
B) defined-contribution 
C) pension 
D) cash-balance

Question 16

An ex-employee may transfer his or her retirement money invested in the former employer's plan to a new employer's retirement plan.

Accepted Answer

A) True 
 B)False

Question 17

A CRT is popular for people who want to leave a portion of their estate to charity.

Accepted Answer

A) True 
 B)False

Question 18

A person who inherits or is entitled by law or by the terms of a will to inherit some asset is called an heir.

Accepted Answer

A) True 
 B)False

Question 19

A trust established while alive to take effect at your death is called a

Accepted Answer

A) living trust. 
B) will. 
C) power of attorney. 
D) testamentary trust. 
A) living trust. 
B) will. 
C) power of attorney. 
D) testamentary trust.

Question 20

Workers who are not active participants in an employer-sponsored retirement plan can deduct contributions to their IRA accounts from their gross income,within specified limits,when filing their federal income taxes.

Accepted Answer

A) True 
 B)False

The typical early withdrawal penalty for taking money out of a retirement account early for unapproved reasons is.

The majority of new employer-sponsored pension plans are defined-benefit plans.

When purchasing an annuity for retirement purposes,

Young workers can afford to be in higher risk investment options with their retirement accounts.

Your preferences for funeral and burial,obituary and location of important documents can best be communicated in your

A salary-reduction plan has tax benefits to the employee because the contributed income is not included in the employee's salary.

If you want to maintain the right to change the terms or cancel a trust that you have created you should use an irrevocable trust.

Trusts can be used to transfer assets outside of probate.

____ means that on termination of employment,an employee can keep his or her savings in a tax-sheltered account by transferring the retirement funds from the employer's account to another account without penalty.

If you inherit a 401(k) retirement account from someone other than a spouse you can avoid taxes by transferring the balance directly into an inherited IRA in your name.

Those who have delayed planning for retirement until their late thirties or forties should begin investing at least 35 percent annually in an effort to catch up.

The amount of one's retirement account value depends directly on the success of investments in the retirement fund if your retirement account is a ____ retirement plan.

A cash-balance plan is a defined-benefit plan that gives each participant an interest-earning account credited with a percentage of pay on a monthly basis.

A matching contribution can only be partial.

In ____ plans,employees control the assets in their accounts are invested.

An ex-employee may transfer his or her retirement money invested in the former employer's plan to a new employer's retirement plan.

A CRT is popular for people who want to leave a portion of their estate to charity.

A person who inherits or is entitled by law or by the terms of a will to inherit some asset is called an heir.

A trust established while alive to take effect at your death is called a

Workers who are not active participants in an employer-sponsored retirement plan can deduct contributions to their IRA accounts from their gross income,within specified limits,when filing their federal income taxes.

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

The typical early withdrawal penalty for taking money out of a retirement account early for unapproved reasons is.

The majority of new employer-sponsored pension plans are defined-benefit plans.

When purchasing an annuity for retirement purposes,

Young workers can afford to be in higher risk investment options with their retirement accounts.

Your preferences for funeral and burial,obituary and location of important documents can best be communicated in your

A salary-reduction plan has tax benefits to the employee because the contributed income is not included in the employee's salary.

If you want to maintain the right to change the terms or cancel a trust that you have created you should use an irrevocable trust.

Trusts can be used to transfer assets outside of probate.

____ means that on termination of employment,an employee can keep his or her savings in a tax-sheltered account by transferring the retirement funds from the employer's account to another account without penalty.

If you inherit a 401(k) retirement account from someone other than a spouse you can avoid taxes by transferring the balance directly into an inherited IRA in your name.

Those who have delayed planning for retirement until their late thirties or forties should begin investing at least 35 percent annually in an effort to catch up.

The amount of one's retirement account value depends directly on the success of investments in the retirement fund if your retirement account is a ____ retirement plan.

A cash-balance plan is a defined-benefit plan that gives each participant an interest-earning account credited with a percentage of pay on a monthly basis.

A matching contribution can only be partial.

In ____ plans,employees control the assets in their accounts are invested.

An ex-employee may transfer his or her retirement money invested in the former employer's plan to a new employer's retirement plan.

A CRT is popular for people who want to leave a portion of their estate to charity.

A person who inherits or is entitled by law or by the terms of a will to inherit some asset is called an heir.

A trust established while alive to take effect at your death is called a

Workers who are not active participants in an employer-sponsored retirement plan can deduct contributions to their IRA accounts from their gross income,within specified limits,when filing their federal income taxes.

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