Additional Questions Flashcards
The difference b/w IRR and time-weighted return is:
- IRR applies only to mutual funds sponsored by one firm
- time-weighted return considers the flow of money in and out of the fund
- IRR only for that yr and time-weighted evaluates the return over a period of yrs
- time-weighted assumes money leaves the plan, and IRR assumes that all the money stays in teh plan
2
An IRA contribution:
- must be made by the end of the calendar yr
- must be made by April 15 (tax filing date)
- must be made by Oct 15 (tax ext. filing date)
- must be made by Jan 1
2
An IRA structure must be used in which of these accts?
- SEP
- ESOP
- DB plan
- SIMPLE
1
an “excess benefit plan” is:
- an illegal plan struct.
- designed to provide exec. w/ additional benef. beyond the limits of a qualified plan
- an ERISA - qualif. plan
- a Keogh (self-employed) plan
2
Which of these stk plans is ERISA qualified plan?
- ISO (Incent Stk Option Plan)
- SAR (Stk Appreciation Rights Plan)
- Restricted Stock Plan
- ESOP
4
A formula that bases benef. on the total earnings of the EE during his/her career w/ the ER is a:
- career-pay plan
- final-pay plan
- annuity purch formula
- money purch formula
- flat pay plan
1
a DB plan that has an “excess formula” is:
- integrated w/ SS
- designed to interact w/ 401K plans
- disqualified under section415
- Provides additional benefits to early retirees
1
In evaluating inv., which risks s/b considered?
- mkt risk
- inflation risk
- business risk
- geographical risk
ALL
Which of the following cannot be held in an IRA?
- indiv. securities
- hedge funds
- collectibles
- annuities
3
A plan sponsoring an SEP must:
- provide SPDs to all eligible EES
- file form 5500
- hire trustee
- select IRA company
4
SEP isn’t an ERISA plan so it doesn’t need to do 1-3
What is Constructive Receipt?
- when an EE has control of receiving the funds, then they are taxable
- date when contrib. are received by IRA custodian
- date when distrib. check is received, starting the 60-day rollover check
- date when EE is elig. for distrib.
1
“cashless exercise” means:
- when an EE chgs inv. options in a plan
- when a comp. decides to not make a contrib. to the SEP that yr
- when an EE decides to exerc. stk options, using the proceeds to pay the req’d amt
- when a stk option becomes worthless, since stk value is less than strike price
3
A ROTH IRA distrib. is:
- taxable unless NRA
- taxable, but no early distrib. penalty at age 59 1/2
- taxable to beneficiaries upon death of owner
- not taxable if held for 5 yrs and after age 59 1/2
4
Rabbi Trusts applies to:
- DB plans
- all ERISA qualified plans sponsored by religious entities
- SEP plans
- NON-qualified deferred comp. plans
4
put aside and ER can’t do anything w/ funds
When I/R’s increase:
- bonds fall
- bonds increase
- stks fall
- stks increase
1
when there has been a plan am., which of the following comm pieces are req’d to be provided to partic.?
- SAR
- SPD
- Form 5500
- SMM
- copy of the plan am.
4
What is a “passive inv”?
- an inv. that has min. chg in value
- an inv. fund that you have someone else manage for you
- an index fund
- a corporate bond
3
Which of the following best represents TNC?
- PV of EE’s indiv. benef. accrued that yr plus incr. in past serv. benef. due to incrs. in comp
- FV of EE’s indiv. benef. accrued that yr plus incr. in past serv. benef. due to incrs. in comp
- PV of EE’s indiv. benef. accrued that yr plus adjmt due to mkt return of inv. portf.
- PV of EE’s indiv. benef. accrued that yr
4
DB plans
determines actuarial funding of the plan ofr the yr.
All of the following are types of fees found in mutual funds except:
- mortality and expense
- front-end load
- mgmt fees
- 12b-1 fees
- back-end load
1
All of the following are features of a Cash Balance Plan except:
- final-pay avg plan
- apply a fixed i/r credit
- form of a DB plan
- provide for relatively early accrual of benef.
- provide annual contrib. credit
1
