EXAM 2 Polls Flashcards
Capital gains tax rate for stocks held at least one year is :
15%
The employment benefit that provides the highest average percentage of total compensation is:
Health insurance
All of the following investments are tax free except:
401k retirement plan
Major changes in the federal tax code implemented in 2018 for families and individuals include all of the following Except:
Eliminate the Mortgage Interest deduction
The best risk management program to guarantee a college education fund in the event of premature death is:
life insurance
Judy has a $70,000 LI policy with CV of $6,500. She has an outstanding policy loan of $3,000. Current loan interest is $150 and dividend is $500. What amount of taxable income, if any, must Judy report as a result of the LI transactions?
$0
All of the following are advantages of LI except:
Policy loans are tax deductible
Todd, age 38, wishes to accumulate cash value in his LI policy to help fund his retirement. He also needs LI to provide survivor’s income for his wife and to pay off the mortgage in case of his premature death. What policy do you recommend?
universal or whole life
Sam has $75,000 WL with $8,000 CV. Policy has minimum guaranteed rate of return of 3% and loan rate of 5%. If Sam borrows $7,000 from the policy, what is net annual interest cost.
140
Meagan is a single parent, age 32 with a one year old child. She has limited income but needs life insurance to fund her child’s college education in case of her premature death. What LI policy would you recommend for Megan?
term life
Policy cash value is $10,000, premiums paid are $8,000. Insured withdraws $9,000 from policy cash value. What amount is taxable?
1000
Michael has a severe knee injury resulting in total medical expenses of $15,500. He has a $2,000 calendar year deductible, 80-20 coinsurance, $5,000 stop loss. What amount of the medical expenses will the insurance company pay?
10,800
Stop Loss in health insurance is:
Cap on insured’s coinsurance and deductible
Group Insurance Best Practices includes all of the following except:
Select 70-30% coinsurance
ACA Health Policies must provide all of the following coverages except:
dental
ACA policies include all of the following provisions except:
lifetime policy limits
ACA premiums are based on all of the follow except:
gender
A federal premium subsidy is available only to ACA policyholders who apply :
through federal exchange
Employer has 75 employees and provides group health insurance, but the premium is too expensive based on ACA guidelines. 12 employees purchase insurance through the Exchange. What is Employer Penalty?
36,000
All of the following are true regarding the Preferred Provider Organization (PPO) except:
Doctor referral is required if policyholder visits a physician out of network
Ace Grocery, Inc. has 60 full time equivalent employees and provides no ACA health insurance. Employees purchase health insurance through the federal exchange and receives a government subsidy. The maximum employer penalty is :
60,000
Advantages of an employer sponsored group health program include all of the following except
Employee may choose any health care provider either in or outside a PPO or POS network with no change in the deductible or coinsurance provisions .
Richard has health insurance with a $2,000 calendar year deductible, 80-20% coinsurance and $5,000 stop loss. He has outpatient surgery, and the total surgeon’s bill is $18,000 . What amount will the insurance company pay?
13,000
Retirement Planning Begins With:
budgeting
Legal elements of a retirement plan include all of the following except:
social security
Average savings needed by an individual age 22 to fund age 67 retirement goal assuming starting career salary of $60,000 is:
1.4 mill
Best Tax Option for Retirement Income is:
tax free
All of the following are exempt from federal tax except:
fed gov bonds
Which of the following is included in an employees FICA (Payroll) Tax?
medicare A (hospital insurance)
Over a sixty year period the investment asset allocation with the highest average ten year return is :
90% stock - 0% bonds -10% cash
Solutions to the Social Security funding crisis include all of the following except:
Maintain the current earnings base for the FICA payroll tax
Which of the following is True regarding the Revocable Living Trust?
RLT is used to minimize probate fees
Benefits of a Revocable Living Trust include all of the following except:
Eliminates need for Will
Property eligible to be placed in a Revocable Living Trust includes all of the following except:
Property titled in a business name
The Grantor of the Revocable Living Trust can also be the Trustee?
true
In the absence of a legal Will, property at death is distributed:
To beneficiaries based on state law
A General Power of Attorney is necessary in addition to a Health Care Power of Attorney.
true
The Living Will relates to:
end of life medical decisions
General Power of Attorney is activated at:
disability
Health Care Power relates to:
Medical treatment
Pour-Over Will relates to:
Property to be placed in Trust following death
First asset or document to place in the Trust is:
life insurance
In 2026, the federal estate tax exemption will reset to:
5 mill
The A-B Trust is designed to minimize the estate tax at death of the :
surviving spouse
Annual gifts to individuals or institutions below _______ and below the estate tax exemption are not subject to gift tax.
$15,000
Property subject to Federal Estate Tax includes all of the following except:
Property in Family Trust B
Federal estate tax rate in 2024 is:
40%
In the A-B Trust, what percentage of the total value of the family estate is subject to estate tax at death of the first spouse ?
0% of total estate value
If an A-B trust is created following death of the first spouse, the surviving spouse may receive income distributions from which Trust?
trusts A and B
