Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CFP (Self Created) > Retirement Planning > Flashcards

Retirement Planning Flashcards

You may prefer our related Brainscape-certified flashcards:
CFP® flashcards
1
Q

Eligibility for Social Security (Spouse of a retired or disabled worker)

A
  • Age 62 or older
  • Child in care under 16
  • Child over 16 and disabled
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

This kind of annuity provides the highest payout to a retiree.

A

Pure life / Straight Life annuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

This kind of annuity provides retirement income to a spouse or other dependent. (Good for Estate Liquidity)

A

Joint and Survivor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Eligibility for Social Security (Widow)

A

Widower must be age 60 or over, or have a child in care under 16.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Eligibility for Social Security (Child)

A

If worker is deceased, disabled or retired, the child needs to be under age 19 and a full time student…OR age 18 and over but has a disability which becan before age 22.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When can a fully insured worker start receiving retirement benefits?

A

The month after they reach age 62.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Nonqualified Plans - Employer Tax Deductions

A

Employer cannot take deductions until employee is taxed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Cash Balance Pension Plan - What Does Employer Guarantee

A

Contribution level AND minimum rate of return (Defined benefit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Who would choose a Cash Balance Plan?

A

Midsize or large company that has a well funded defined benefit plan and is looking to save on contributions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which retirement plans may forfeitures increase account balances of plan participants?

A

PSP and Money Purchase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When would a plan be considered top heavy?

A

More than 60% of its accrued benefits are allocated to KEY employees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Four plans that can be integrated with Social Security

A

Stock Bonus, SEP, Defined Benefit, Target Benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Three plans that are prohibited from loan provisions

A

SEPS, SIMPLES, and IRAS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Traditional IRA - Who can Participate?

A

Cannot participate if you are not being compensated (Earned income). Also must consider spousal retirement accounts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Roth IRA - Who can Participate?

A

AGI Limitation and you must have EARNED income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

These kinds of investments are not allowed in 403(b)

A

Unit Investment Trusts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Who Enforces ERISA?

A

The DOL

18
Q

These types of investments are popular for Defined Benefit Plans

A

GICs - generally they have a 2-7 year maturity

19
Q

Can SIMPLE Plans purchase life insurance?

A

NO

20
Q

Only this type of plan can hold second to die insurance

A

Profit Sharing Plan

21
Q

Are SEPS subject to FICA and FUTA?

A

No

22
Q

When are you eligible to rollover a SIMPLE?

A

After 2 years of service.

23
Q

These types of plans require the spouse to be the beneficiary.

A

Pension Plans - Defined Benefit, Cash Benefit, Money Purchase, and Target Benefit

24
Q

True or False: QDROs apply to IRAs.

A

False

25
Q

A direct distribution from a qualified plan requires the plan administrator to withhold _____%?

A

20%

26
Q

What if an individual with two IRA accounts needs to take RMDs?

A

Calculate the RMD from the aggregate IRA values and then take the total RMD from one plan.

27
Q

What does an “informally” funded plan mean? (AKA Unfunded)

A

The assets are owned by the company and are subject to the company’s creditors.

28
Q

When is the employee taxed under an unfunded plan?

A

When he or she has constructive receipt or economic benefit.

29
Q

If the holding requirements are met for an ISO - how will the resulting gain be taxed?

A

As a Long Term Cap Gain (favorable)

30
Q

When is the interest from a 401(k) loan to purchase a house deductible?

A

Must be a rank and file employee and the loan must be secured with the primary residence.

31
Q

What is the penalty for withdrawing a SIMPLE before two years is up?

A

25% early withdrawal penalty.

32
Q

Which kind of investment may produce UBTI income?

A

Equipment Leasing Program

33
Q

Does a Rabbi Trust automatically trigger constructive receipt?

A

NO - assets are still held by the company

34
Q

What sorts of things could affect a target benefit plan participant’s retirement benefits?

A
  • Age
  • Compensation
  • Investment Performance
  • Actuarial Assumptions
35
Q

Do SEPs have loan provisions?

A

NO

36
Q

What is the phaseout for Coverdell?

A

190k to 220k

37
Q

What is the phaseout for Roth?

A

118 - 133k (Single)

186k - 196k (MFJ)

38
Q

When my an employee avoid receipt of taxable income in a funded nonqualified deferred compensation plan?

A

When there is substantial risk of forfeiture.

39
Q

True or False: Every type off qualified plan can offer a loan feature.

A

TRUE!

40
Q

True or False: Use of company apartment on weekends is tax-free to the employee.

A

False - weekends makes it taxable.

41
Q

true or false

A

test

CFP (Self Created) (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions