IRA Flashcards

1
Q

Traditional IRA

A

Earned income, regardless of age, pretaxed, up to a lmit, dedectable. withdral 59.5 - 72 10% early withdreal fee

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2
Q

Roth IRA

A

Earned income, regardless of age, contributons (AFTER TAX), up to limit, not deductible, withdrawals. NO age 72 rule. Not taxed.

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3
Q

IRA early withdrawl

A

without penalty…total disability, catastrophic medical expenses, downpay for first home up to 10K, or post-secondary education.

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4
Q

IRA Rollovers

A

rollover tax-free distibution of cash from one retirement plan to another. direct transfer tax free transfer of funds from one retirement program to traditional IRA. Must be done in 60 days. In test world, Rollover, if they send check direct they will keep 20percent to IRS. Better to do a direct transfer, then

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5
Q

5 plans for employers

A

SEP self employed or SMALL employer - employer funds.
———
SIMPLE for small employer less than 100 employees - employer matches contributions.
———-
401K any employer (large)-employer matches contributions.
———————
403(b) - TSA - non-profit/charity. employee and employer.

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6
Q

Business Uses of Life insurance (Key person)

A

Key employee is the insured, special knowldge skills, contracts.
Business is the applicant/policy owner/premium payer and the beneficiary.

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7
Q

Buy-Sell agreement

A

legal contract that determines what will be done with the business when an owner dies or becomes disabled. Also known as business continuation agreement.

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8
Q

what is taxable?

A

Excess cash value and interest on dividends

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9
Q

MEC and & pay Tests MEC is always and will always be

A

Modified Endowment Contract

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10
Q

who’s eligible for social security disability benefits

A

40 work credits - 5 month waiting period - benefit based on PIA - and stops when retired or disability ends.

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11
Q

DIrector of Insurance

A

HEad of Illinois. Appointed by Governor, has rights and powers to enforce and execute the insurance laws.

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12
Q

Director’s power

A

Issue ceast and disist orders and fines.

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13
Q

Exam

A

Audit

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14
Q

Types of Licenses

A

Producer (Agent) Business entity, Non resident and temporary license.

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15
Q

Temp license,

A

for applicants expected to be licensed permanelty up to 90 days. or spouces in event producers death 180 days.

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16
Q

Bonds

A

if you take money and wire it you will need a bond

17
Q

COntinuing education

A

24 hours every license period 3 must be ethics and in classroom. License period 2 years.

18
Q

Notify depoart of Insurace of moves or if being sued…

A

within 30 days of move or fine.

19
Q

Reinstatement

A

12 months without retake exam, just pay fee. Pay request waiver only if lapse due to military.

20
Q

If license revoked or suspended, can not be reapplied for ____ years

A

3

21
Q

Fiduciary responsibility

A

Keep customer money seperate Premium Fund Trust Account (PFTA).

22
Q

Producer Regulation

A

Books and records PFTA must be posted every 30 days. Must maintain books for 7 hears. Return of premiums within 15 days. any compensation that is more than 10% must provide written disclosure and signature of consumer.

23
Q

Ads must be kept on file for

A

4 years or next audit

24
Q

Insurance Guaranty Association

A

If an insurance company went out of business, this association will pay out claims.