Retirement Chapter 1: Retirement Planning

Question 1

If the question does not specify “today’s dollars”, _________ is not a factor in the calculation.

Answer 1

Inflation

Question 2

Does a gift of retirement account balances at death to a charity have exposure to income or estate tax?

Answer 2

No

Question 3

Why is there no estate tax at the death of the retiree when survived by a spouse?

Answer 3

Unlimited marital estate tax deduction

Question 4

Pension max <> pure life annuity

Answer 4

With this strategy, the difference between a pure life payout and a joint and survivor payout is used to fund life insurance to provide for the surviving spouse

Question 5

What kind of annuities are normally used in defined benefit plan distributions?

Answer 5

Pure life annuity; highest payout to the retiree for his or her lifetime but no benefits to the spouse

Question 6

What is a serial payment?

Answer 6

The amount of savings increases each year based on an inflation projection.