Mock Exams

Question 1

Rolling Funds Into an IRA

Answer 1

This is an area of scrutiny for regulators, below are a few notes on how to handle:
- Typically clients should keep funds in the 401(k) from 55-59 1/2 as you can take a distribution without a 10% penalty if you seperate from service
- After 59 1/2 rollovers can be considered

Question 2

Picking the Appropriate College Funding Vehicle

Answer 2

• Typically would not pick a 529 for a 15/16 year old who may need the money in a few year (high school is to late to start a 529 plan)

Question 3

UBTI

Answer 3

Passive income generated in qualified plan (such as MLP’s) will trigger UBTI if income is more than $1,000.
- Lots of costly paperwork and potential taxability of disqualification of the IRA
Typically the answer is limited partnerships for UBTI questions