Wrong Answer 85 question quiz 3

Question 1

Can an RMD be delayed past April 1st of the following year turning 73 while continuing to work?

Answer 1

No

Question 2

Single premium life policies purchased after what year are considered mecs?

Answer 2

1998

Question 3

Whats the gain in a whole life policy?

Answer 3

CV-basis.

Question 4

If a client disagrees with inflation is it okay to run the plan based on a 1 year inflation rate?

Answer 4

no

Question 5

Is a 529 more suitable for a client willing to take on risk?

Answer 5

yes

Question 6

How many years of college does AOC cover?

Answer 6

4 years post secondary

Question 7

Can you use an AOC credit with a Life time learner credit in the same year.

Answer 7

no

Question 8

Can the life learner credit be used for a masters

Answer 8

yes

Question 9

Can AOC credit be used for Masters

Answer 9

no

Question 10

Do minimal gifts like fruit and candy need to be disclosed to clients from their cpa?

Answer 10

no

Question 11

Does a negative NPV indicate a profitable investment

Answer 11

yes

Question 12

If the NPV is 0 what does that mean?

Answer 12

met rate of return

Question 13

Are general powers of appointment added back to an estate of the holder of those powers?

Answer 13

yes

Question 14

Are dividends used to buy paid up (permanent) additions are treated as income-first distributions.

Answer 14

No

Question 15

Under a MEC how are cash dividends in a MEC paid out under income-first distributions?

Answer 15

FIFO

Question 16

What age do 2503(c) minor’s trust terminate usually.

Answer 16

When the minor turns 21.

Question 17

If both parents passed what is the flow of a revocable trust?

Answer 17

First become irrevocable then would turn into a family trust.

Question 18

What does the Federal Reserve do?

Answer 18

it influences money and credit

Question 19

Does hiring a portfolio manager help mitigate legal risks within a pension plan?

Answer 19

Yes doesn’t eliminate trustees of plan are still liable.

Question 20

Can someone collecting SSDI collect past their FRA?

Answer 20

no the cease at/after

Question 21

before 59.5 can a client take a hardship withdraw from an IRA penalty free?

Answer 21

no only applies to 401ks and certain 403bs

Question 22

If you sell a home and qualify for the 121 exclusion how long do you have to wait on the second property?

Answer 22

2 years

Question 23

What does a dollar weighted return calculate?

Answer 23

IRR

Question 24

What does unilateral mean in a disability policy?

Answer 24

The insured pays a premium to insurance company to cover perils

Question 25

What does Non-cancelable continuation mean?

Answer 25

premiums are not allowed to increase in the future.

Question 26

Can profit sharing plans be integrated with SS?

Answer 26

yes

Question 27

Are profit sharing plans flexible?

Answer 27

yes

Question 28

Can an employer put more than 25% into a profit sharing for an employee

Answer 28

yes but deductibility stops at 25%

Question 29

Can you breach confidentiality if the client did something illegal and must coordinate with the law.

Answer 29

yes and terminate the relationship

Question 30

If a self employed business owner has a group life policy that exceeds 50k DB is that treated as income to the owner.

Answer 30

yes

Question 31

Is NUA in an esop taxed a long term cap gains regardless of when sold?

Answer 31

yes

Question 32

From distribution amount from ESOP FMV to the time sold is that short term cap gains?

Answer 32

yes

Question 33

What is a section 125 plan

Answer 33

FSA

Question 34

Is an FSA subject to FICA and FUTA?

Answer 34

no

Question 35

The gain on a stock that was inherited is considered what type of gains?

Answer 35

LTCG

Question 36

Does the 3 year rule occur when their was a transfer for value of a life policy?

Answer 36

no sale occurred

Question 37

If a life policy is sold to someone other than the insured or a business which the partner is an owner. Does that violate transfer for value?

Answer 37

yes and the DB is includable in the purchasers estate.

Question 38

Is it okay from a planning standpoint to invest in munis in an UTMA?

Answer 38

yes

Question 39

If you give money to your spouse then they gift it your daughter is that considered a step transaction and violates the marital deduction transfer rules?

Answer 39

yes

Question 40

To qualify for the marital deduction for gifting what are two things you can do?

Answer 40

Give gift outright (no step transactions) or a right to income from property and general appointment

Question 41

Does recapture 10% and total payments prior to 59.5 apply to someone distributing IRA assets before that age.

Answer 41

yes

Question 42

Will Medicare pay for the first 20 days in a skilled facility?

Answer 42

yes

Question 43

How many days will medicare cover in full after the 20 days are used up?

Answer 43

80

Question 44

If attorneys want a plan with no emp cont. and no mandatory cont. what plan would you recommend?

Answer 44

Profit Share

Question 45

Can you be active in a 403b and cont to an IRA having it deductible?

Answer 45

No

Question 46

Can you cont to a 457 and a trad IRA and deduct the ira amount

Answer 46

yes

Question 47

Whats the replacement value of a home

Answer 47

FMV less land

Question 48

Replacement coverage under HO policies is reduced to the extent that the policy owner does not carry insurance how much insurance of replacement value.

Answer 48

80%

Question 49

After you find the co insurance in a claim what do you multiply that by?

Answer 49

damages

Question 50

With GSTT when the child dies what happens to the funds as it relates to the grandchild.

Answer 50

Taxes are paid first from the trust then passed to grandchild.

Question 51

Are profitability projections included in corporate annual reports?

Answer 51

no misleading

Question 52

Do prepaid tuition plans cover room and board?

Answer 52

no

Question 53

Are prepaid tuition plans affected by family contributions

Answer 53

no

Question 54

In a company failure what happens to a deferred comp plan?

Answer 54

subject to creditors

Question 55

When must a participant elect the amounts to contribute to an FSA

Answer 55

the year prior

Question 56

What are the benefits of an HO 15

Answer 56

They allow for a more generous personal prop limit

Question 57

Call all of these be done if code of ethics is violated? Private censure II. Public letter of admonition III. Suspension IV. Revocation

Answer 57

yes

Question 58

Does a child in care apply to a disabled child

Answer 58

yes

Question 59

Is a private letter sent if the cfp code of ethics are violated?

Answer 59

no

Question 60

Whats the limit for gold coin coverage on HO?

Answer 60

$200

Question 61

How much is silver covered under HO for theft?

Answer 61

$2,500

Question 62

Is a cont. to a coverdell a gift of present interest?

Answer 62

yes and not deductible

Question 63

If a baby is on the way what should be priority if clients dont have emergency funds?

Answer 63

Life insurance.

Question 64

Are strips subject to default risk

Answer 64

No printed by the gov

Question 65

what is a wealth replacement trust

Answer 65

ILIT

Question 66

What is ideal to work with a CRT to unsure the beneficiaries receive something when the assets are sent to the charity after death of donor and donor has depleted income.

Answer 66

Wealth replacement trust (ILIT)

Question 67

Is a 1 year cd liquid?

Answer 67

yes

Question 68

Fiscal policy falls under whom?

Answer 68

the federal government

Question 69

What does the federal government do if it wanted to increase money supply?

Answer 69

reduce federal income taxes