Misc. Flashcards
A qualified annuity is synonymous with a…
A retirement plan
A non-qualified annuity is definitely not a…
not a retirement plan; else it would have special tax treatment
What is a decedent?
The deceased annuitant of a deferred annuity (it is NOT simply another word for deceased. It refers strictly to the dead owner of an annuity)
What happened on 1-18-1985?
Government decided that a spouse cannot choose an annuitant exchange for her beneficiary option
the BOG: “Receive an Income” think…
settlement option!
Receive An Income is synonymous with…
settlement option
An Immediate Distribution could be… (2 things)
Cashing out
FPDA
What is an example of an annuitized product?
An FPDA or a DISO
What are 2 income settlement options?
FPDA and DISO
A DISO is not…
an income stream
Eligible Designated Beneficiaries is only ever in regard to…
retirement plans
When would the beneficiary need to fill out section 11?
NEVER! Section 11 is only for the FP
What is the penalty for not satisfying the RMD?
50% of the amount of the RMD that you were supposed to take out but didn’t.
The beneficiary is confused when you told him the RMD age is 72. Explain
He’s probably confused because the RMD used to be 70 ½, not very long ago that’s what it was. in 2020, the SECURE act changed the age to 72
