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Exam 17: Retirement Planning

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Question 71

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You can set up an IRA by

A) ​making annual contributions.
B) ​rolling over a distribution received from a qualified employer-sponsored plan.
C) ​rolling over from another IRA.
D) ​Any of these.

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Question 72

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Funds that are deposited to a deductible retirement plan and not taxed at that time are fully taxable when the money is withdrawn.

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Question 73

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Putting money into tax-sheltered retirement plans is the single smartest idea in personal financial planning.

Suggestions and recommendations regarding funeral and burial instructions,organ donation wishes,material to be included in the obituary,contact information for relatives and friends,and other information useful to the survivors (such as the location of important documents)are best accomplished via a will.

At a minimum you should contribute enough into your retirement account to receive the maximum

A positive aspect of defined-benefit plans is that

There are a few situations in which the IRS imposes no penalty for early withdrawals from an IRA account.

____ is not a community property state.

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

A beneficiary is a person or organization designated to receive a benefit,such as an IRA or 401(k)plan.

Trusts can only take effect during the grantor's life.

Experts estimate that retirees need approximately 50 percent of their preretirement income to live comfortably.

The partnership theory of marriage rights is the basis for the presumed intent of wedded couples to share their fortunes equally.

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

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

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

A Keogh plan is applicable to people who are self-employed.

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

A direct trustee-to-trustee rollover will avoid the IRS's 20 percent withholding on retirement rollover.

IRA funds can be invested in only very low-risk investments.