Part One

Question 1

Community property

Answer 1

Marital property in some states probably a wrong answer on test

Question 2

457 plan

Answer 2

State employees and non government non profit

Exempt from ERISA

Not required to follow nondiscrimination rules

Non government distributions can’t be rolled into and ira but there is no 10% penalty

Can max out a 457 and another qualified account

Question 3

Custodial accounts (UTMA)

Answer 3

All gifts are irrevocable

One custodian and one minor

A donor can be custodian or appoint someone else

Only custodian has legal control

A minor can have multiple UTMAs

The minor can sue custodian for improper actions

Only cash accounts allowed (no margins)

Question 4

Types of defined contribution plans

Answer 4

401k
Money purchase pension
Profit sharing

Question 5

Contributory plan

Answer 5

Both employees and employers make contributions like in a 401k

Question 6

Non contributory plan

Answer 6

Only employer makes contributions

Question 7

Employer contributions taxes

Answer 7

100% deductible

Question 8

Employer contributions to defined benefit and money purse pension plans

Answer 8

Are mandatory

Question 9

Profit sharing plans contribution formula

Answer 9

No defined formula but must have substantial and reoccurring contributions

Question 10

SEP IRA qualifications

Answer 10

Age 21
Worked for employer 3 of 5 last years
Received $600 in compensation from employer.

Question 11

Sep ira catch up

Answer 11

Not allowed for self employed