Webinar Questions Flashcards
Which of the following statements concerning distributions from qualified retirement plans is correct?
A. The methodology for determining the amount that will be paid if a participant elects a life annuity is the same in a 401(k) plan as with a cash balance plan.
B. If the market goes up in both a profit-sharing plan and a cash balance plan the account balance increases proportionately.
C. Similar to a traditional defined benefit plan, if George has a big increase in salary this year his benefit is likely to increase significantly in a cash balance plan.
D. Both traditional defined benefit plans and cash balance plans are subject to the PBGC insurance program and the minimum funding requirements
Which of the following statements concerning distributions from qualified retirement plans is correct?
A. The methodology for determining the amount that will be paid if a participant elects a life annuity is the same in a 401(k) plan as with a cash balance plan.
B. If the market goes up in both a profit-sharing plan and a cash balance plan the account balance increases proportionately.
C. Similar to a traditional defined benefit plan, if George has a big increase in salary this year his benefit is likely to increase significantly in a cash balance plan.
D. Both traditional defined benefit plans and cash balance plans are subject to the PBGC insurance program and the minimum funding requirements
All the following statements concerning regulatory guidance on lifetime income options in tax-advantaged retirement plans are correct EXCEPT?
A. Regulations allow the participant in an IRA to disregard a QLAC when determining required minimum distributions from the account.
B. Proposed regulations make it easier for a defined benefit plan to offer a distribution option that is a combination of an annuity and a lump sum.
C. Regulations allow IRA participants to purchase a QLAC which can be either a deferred income annuity or a deferred annuity with a GLWB.
D. An IRS Notice simplified compliance with spousal protection rules when a participant elects to invest in a deferred annuity in a 401(k) plan.
All the following statements concerning regulatory guidance on lifetime income options in tax-advantaged retirement plans are correct EXCEPT?
A. Regulations allow the participant in an IRA to disregard a QLAC when determining required minimum distributions from the account.
B. Proposed regulations make it easier for a defined benefit plan to offer a distribution option that is a combination of an annuity and a lump sum.
C. Regulations allow IRA participants to purchase a QLAC which can be either a deferred income annuity or a deferred annuity with a GLWB.
D. An IRS Notice simplified compliance with spousal protection rules when a participant elects to invest in a deferred annuity in a 401(k) plan.
Which of the following statements concerning the exceptions to the 10 percent early withdrawal penalty tax is correct?
A. In order to qualify for a SEPP distributions must continue for the shorter of 5 years or to age 59 ½.
B. The death benefit exception only applies to distributions to a surviving spouse.
C. To qualify for the higher education expense exception, withdrawals must be used to pay college education expenses within 120 days of the withdrawal.
D. To comply with the disability exception, the individual has to demonstrate that he or she is not able to pursue any gainful employment.
Which of the following statements concerning the exceptions to the 10 percent early withdrawal penalty tax is correct?
A. In order to qualify for a SEPP distributions must continue for the shorter of 5 years or to age 59 ½.
B. The death benefit exception only applies to distributions to a surviving spouse.
C. To qualify for the higher education expense exception, withdrawals must be used to pay college education expenses within 120 days of the withdrawal.
D. To comply with the disability exception, the individual has to demonstrate that he or she is not able to pursue any gainful employment.
All the following statements concerning rollovers from a 401(k) plan to an IRA are correct EXCEPT
A. To rollover the entire distribution (without using other funds) the participant must elect a direct rollover.
B. A participant with a required minimum distribution for the year cannot roll over that amount into the IRA.
C. A spousal beneficiary who wants to rollover must elect a direct transfer to an inherited IRA.
D. Any portion of an eligible rollover distribution can be rolled over.
All the following statements concerning rollovers from a 401(k) plan to an IRA are correct EXCEPT
A. To rollover the entire distribution (without using other funds) the participant must elect a direct rollover.
B. A participant with a required minimum distribution for the year cannot roll over that amount into the IRA.
C. A spousal beneficiary who wants to rollover must elect a direct transfer to an inherited IRA.
D. Any portion of an eligible rollover distribution can be rolled over.
Julie, age 50, has three Roth IRAs. One is valued at $20,000 and has $15,000 of new contributions. Another, was rolled over from a former employer’s 401(k) Roth account and worth $25,000 and includes $15,000 of contributions. The third was converted earlier in the year and income taxes were paid on the entire $50,000 converted. Today, the account is worth $55,000. Considering Federal income taxes and penalty taxes and a 25% tax rate, how much in taxes will be paid if Julie withdraws all $55,000 from the converted Roth IRA?
A. $0
B. $2,500
C. $13,750
D. $16,250
Julie, age 50, has three Roth IRAs. One is valued at $20,000 and has $15,000 of new contributions. Another, was rolled over from a former employer’s 401(k) Roth account and worth $25,000 and includes $15,000 of contributions. The third was converted earlier in the year and income taxes were paid on the entire $50,000 converted. Today, the account is worth $55,000. Considering Federal income taxes and penalty taxes and a 25% tax rate, how much in taxes will be paid if Julie withdraws all $55,000 from the converted Roth IRA?
A. $0
B. $2,500
C. $13,750
D. $16,250
Sarah dies on 12/1/2014 at age 78 with an IRA account valued $400,000 on 12/31/2013 and $375,000 on 12/31/2014. On 9/30/2015, her sole beneficiary is Dharma, her daughter who was born 9/1/1967. The divisor from the uniform lifetime table at age 77 is 21.2 and for a 78-year-old is 20.3. Under the single life expectancy table, the life expectancy is 37.0 for a 47-year-old, 36.0 for age 48, 35.1 for age 49. What is the required minimum distribution for 2014, the year of death?
$400,000/20.3 = $19,704
What is the required distribution for 2015?
$375,000/36.0 = $10,417
Sarah dies on 12/1/2014 at age 78 with an IRA account valued $400,000 on 12/31/2013 and $375,000 on 12/31/2014. On 9/30/2015, her sole beneficiary is Dharma, her daughter who was born 9/1/1967. The divisor from the uniform lifetime table at age 77 is 21.2 and for a 78-year-old is 20.3. Under the single life expectancy table, the life expectancy is 37.0 for a 47-year-old, 36.0 for age 48, 35.1 for age 49. What is the required minimum distribution for 2014, the year of death?
$400,000/20.3 = $19,704
What is the required distribution for 2015?
$375,000/36.0 = $10,417
All of the following statements concerning Medicare Parts A and B are correct EXCEPT
Signing up for Medicare during the general enrollment period in March means coverage begins April 1.
A retiree covered by COBRA has to enroll in Medicare at age 65 to have adequate coverage because Medicare becomes the primary payer.
A retiree covered under Medicare has met the health insurance requirement of the Affordable Care Act.
A Medicare beneficiary can choose to have benefits provided by a Medicare Advantage plan instead of original Medicare
All of the following statements concerning Medicare Parts A and B are correct EXCEPT
Signing up for Medicare during the general enrollment period in March means coverage begins April 1.
A retiree covered by COBRA has to enroll in Medicare at age 65 to have adequate coverage because Medicare becomes the primary payer.
A retiree covered under Medicare has met the health insurance requirement of the Affordable Care Act.
A Medicare beneficiary can choose to have benefits provided by a Medicare Advantage plan instead of original Medicare
George attains age 65 on September 7. If he enrolls in Medicare Parts A and B on September 10 his Medicare coverage begins on
June 1
September 1
October 1
December 1
George attains age 65 on September 7. If he enrolls in Medicare Parts A and B on September 10 his Medicare coverage begins on
June 1
September 1
October 1
December 1
Mrs. Pink’s initial enrollment period ended November 30, 2014 and she signed up for Medicare Part B in March of 2016 during the general enrollment period. She will pay a Part B penalty on the premium of
0%
10%
14%
20%
Mrs. Pink’s initial enrollment period ended November 30, 2014 and she signed up for Medicare Part B in March of 2016 during the general enrollment period. She will pay a Part B penalty on the premium of
0%
10%
14%
20%
When a Medigap plan has a pricing approach which changes the premium each year based on advancing age the approach is referred to as
Issue-age rating
Community rating
Age rating
Gender rating
When a Medigap plan has a pricing approach which changes the premium each year based on advancing age the approach is referred to as
Issue-age rating
Community rating
Age rating
Gender rating
All the following statements concerning income related Medicare premium adjustments are correct EXCEPT
MAGI earned in 2015 is used to determine premiums in 2016.
MAGI in 2016 that exceeds $320,000 for a married taxpayer will put the individual in the top Medicare premium tier in 2018.
MAGI includes taxable distributions from traditional IRAs.
A retiree who has post-employment drop in MAGI can challenge the income related adjustments to Medicare premiums
All the following statements concerning income related Medicare premium adjustments are correct EXCEPT
MAGI earned in 2015 is used to determine premiums in 2016.
MAGI in 2016 that exceeds $320,000 for a married taxpayer will put the individual in the top Medicare premium tier in 2018.
MAGI includes taxable distributions from traditional IRAs.
A retiree who has post-employment drop in MAGI can challenge the income related adjustments to Medicare premiums
Which of the following statements about qualified charitable distributions (QDCs) from IRAs are true?
A QDC counts toward determining MAGI.
Anyone age 65 and older is eligible to elect QDC transfers to their favorite charities.
The maximum annual QDC amount per individual is $250,000.
A QDC counts toward satisfying the required minimum distribution rules.
Which of the following statements about qualified charitable distributions (QDCs) from IRAs are true?
A QDC counts toward determining MAGI.
Anyone age 65 and older is eligible to elect QDC transfers to their favorite charities.
The maximum annual QDC amount per individual is $250,000.
A QDC counts toward satisfying the required minimum distribution rules.
All of the following are true regarding people who provide custodial care services EXCEPT:
A. Unlicensed professionals can provide custodial care in the care recipient’s home
B. An individual cannot provide custodial care services to him or herself.
C. Custodial care is typically not covered by Medicare.
D. Typically, custodial care is designed to assist someone with his or her activities of daily living or instrumental activities of daily living.
All of the following are true regarding people who provide custodial care services EXCEPT:
A. Unlicensed professionals can provide custodial care in the care recipient’s home
B. An individual cannot provide custodial care services to him or herself.
C. Custodial care is typically not covered by Medicare.
D. Typically, custodial care is designed to assist someone with his or her activities of daily living or instrumental activities of daily living.
Which of the following statements is (are) true regarding activities of daily living (ADLs)?
I. ADLs are basic physical functions that are necessary to complete everyday tasks.
II. ADLs include the self-care tasks of being able to demonstrate functional mobility, dressing, transferring, and personal hygiene.
A. I Only
B. II Only
C. Both I and II
D. Neither I nor II
Which of the following statements is (are) true regarding activities of daily living (ADLs)?
I. ADLs are basic physical functions that are necessary to complete everyday tasks.
II. ADLs include the self-care tasks of being able to demonstrate functional mobility, dressing, transferring, and personal hygiene.
A. I Only
B. II Only
C. Both I and II
D. Neither I nor II
Which of the following is true regarding long-term care facilities?
A. Roughly 30 million retirees need LTC services each year.
B. On average, LTC costs over $100,000 a year in a facility.
C. Nursing homes and assisted living facilities each have over 1 million residents.
D. Adult day care centers provide a full range of LTC services and housing options.
Which of the following is true regarding long-term care facilities?
A. Roughly 30 million retirees need LTC services each year.
B. On average, LTC costs over $100,000 a year in a facility.
C. Nursing homes and assisted living facilities each have over 1 million residents.
D. Adult day care centers provide a full range of LTC services and housing options.
