Possibly The Last Deck Flashcards
Do pour over assets go thru probate? Are they poured into an existing trust?
Yes, and yes.
If NPV is positive, what must IRR be?
Greater than the required rate of return; when NPV = 0, IRR = required rate of return.
How do you calculate life insurance under the capital needs approach? Do you adjust for inflation?
Divide the annual need by the interest rate. Adjust for inflation if necessary, and add in any chunks of capital you’ll need to pay off mortgages.
When is a 529 included in a bankruptcy estate?
When it was created in the last 24 months.
Do SEPs prohibit forfeitures?
Yes.
How long can employees be excluded from SEP’s?
3 years or age 21, whichever is longer.
What is the filing date for all qualified plans?
Tax return date + extensions.
Is capital loss on stock investment above the line or below the line?
Above.
Are net expenses on rental property deductible above the line?
Yes, assuming it’s not mixed-use property.
How long do conversions have to stay in a Roth?
5 years if you’re not 59.5
If you’re 55+, can you take substantially = payments from your IRA? As long as…?
Yes, as long as they last the greater of 5 years or until you reach 59.5
If you help someone figure out their insurance needs, is that financial planning or financial advice?
Financial advice
If a neighbor is suing a CFP for putting a fence across the property line, does that need to be reported to the CFP board?
Yes. Any civil lawsuit involving theft or fraud needs to be reported.
Can private placements be offered to non-accredited investors? Is there any limit to the number of accredited investors?
Yes, private placements can be offered to up to 35 non-accredited investors, and an unlimited number of non-accredited investors.
Under what circumstance can you have no earned income and contribute to an IRA?
If you’re spouse works you can use her income to qualify to make a contribution.
What is the best life insurance choice for a middle-age or older person looking to fund an ILIT to pay his estate taxes?
Whole Life because the guaranteed growth of the cash value is higher.
What is the maximum deduction for charitable gifts?
50% of AGI.
Is there an education penalty exception for a 401k Roth early withdrawal? Why not?
No. A 401k Roth is a qualified plan, and there is no early withdrawal penalty exception for qualified plans.
What is the latest date an S-corp can file? What is the latest date with extensions? What is the latest date an S-corp can start a SEP or other plan?
3/15. 9/15 with extensions. This is because an S-corp files K-1s which are due on 3/15.
What are the three splits for auto insurance policy?
Injury per person / total personal injury per accident / total property damage.
Does the CFP board require a written agreement for financial advice?
No.
When is the $ value of an LI policy exempt from bankruptcy?
When the beneficiary is a spouse or dependent.
Does a non-elective contribution make you an active participant?
Yes.
What is a simple trust? What is a complex trust?
A simple trust pays out all income annually. A complex trust allows the trustee discretion in whether to pay out income or accumulate it.
