IRA Flashcards
Traditional IRA
Earned income, regardless of age, pretaxed, up to a lmit, dedectable. withdral 59.5 - 72 10% early withdreal fee
Roth IRA
Earned income, regardless of age, contributons (AFTER TAX), up to limit, not deductible, withdrawals. NO age 72 rule. Not taxed.
IRA early withdrawl
without penalty…total disability, catastrophic medical expenses, downpay for first home up to 10K, or post-secondary education.
IRA Rollovers
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
5 plans for employers
SEP self employed or SMALL employer - employer funds.
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SIMPLE for small employer less than 100 employees - employer matches contributions.
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401K any employer (large)-employer matches contributions.
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403(b) - TSA - non-profit/charity. employee and employer.
Business Uses of Life insurance (Key person)
Key employee is the insured, special knowldge skills, contracts.
Business is the applicant/policy owner/premium payer and the beneficiary.
Buy-Sell agreement
legal contract that determines what will be done with the business when an owner dies or becomes disabled. Also known as business continuation agreement.
what is taxable?
Excess cash value and interest on dividends
MEC and & pay Tests MEC is always and will always be
Modified Endowment Contract
who’s eligible for social security disability benefits
40 work credits - 5 month waiting period - benefit based on PIA - and stops when retired or disability ends.
DIrector of Insurance
HEad of Illinois. Appointed by Governor, has rights and powers to enforce and execute the insurance laws.
Director’s power
Issue ceast and disist orders and fines.
Exam
Audit
Types of Licenses
Producer (Agent) Business entity, Non resident and temporary license.
Temp license,
for applicants expected to be licensed permanelty up to 90 days. or spouces in event producers death 180 days.