Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/59

Click to flip

59 Cards in this Set

  • Front
  • Back
(Ch. 11) 2 examples of nonqual retirement plans
1-payroll dedn 2- deferred comp
(Ch. 11) 2 special features of roth ira
possible tax free dist does not require dist by age 70 1/2
(Ch. 11) educational ira's max contrib what is special about these
2k per year after tax contrib & tax free dist for education
(Ch. 11) investments that are not allowed in iras
insurance collectibles
(Ch. 11) ira contrib limit singe
4k or 100% of earned income
(Ch. 11) ira contrib limit singe
8k for joint return split in two accts
(Ch. 11) ira contrib limit.. excess contrib penalry
6% excess penalty
(Ch. 11) ira w/d,,, what age is "early" w/d and what is penalty
age = 59 1/2 penalty 10% + ordinary income tax
(Ch. 11) main rish in nonqual retire plans
main risk is employer failure
(Ch. 11) re iras…. allowable rollovers and transfers
1 rollover every 12 mos to be complete in 60 days unlimited trustee transfers
(Ch. 11) re nonqual retirement plans… ok to be discriminiatory?
yes
(Ch. 11) what are keoghs
hr 10 qualified plans for self emp & owner employees
(Ch. 11) what are SEPs
qualified plans for self emp & small business, allows employers to contrib to employee ira's
(Ch. 11) what are TSA's
403b plans for employees of non profits
(Ch. 11) what is insufficient dist penalry for ira
percent = 50%
(Ch. 11) what is keogh contrib max
43k
(Ch. 11) what is latest ira withdrawl can start w/o penalry
by age 70 1/2
(Ch. 11) what is w/h rate for profit sharing plan dist
0.2
(Ch. 12) name 3 types of annuitization
1- life income, no beneficiary 2- life w/ period certain 3- joint lieft w/ last survivor
(Ch. 12) re annuities… relationship btwn AIR and monthly income
monthly inc up --> separate acct > AIR monthly inc dn --> separate acct < AIR
(Ch. 12) what is annuitization
income guaranteed for life
(Ch. 10) invest co products open ended of closed: continuous primary offering
open
(Ch. 10) invest co products open ended of closed: aka mutual fund
open
(Ch. 10) invest co products open ended of closed: price determinated by formula in prospectus
open
(Ch. 10) invest co products open ended of closed: issues fractional shares
open
(Ch. 10) invest co products open ended of closed: redemption in 7 days
open
(Ch. 10) invest co products open ended of closed: trade in secondary mkt
closed
(Ch. 10) invest co products open ended of closed: issues debt and equity
closed
(Ch. 10) invest co products open ended of closed: fixed number of shares
closed
(Ch. 10) invest co products open ended of closed: sold w/ prospectus in IPO only
closed
(Ch. 10) invest co products diversified rules
75/5/10 rule -> 1-75% invest in other co's 2-max 5% in any one co 3- may own no more than 10% of target co's voting stock
(Ch. 10) invest co products invest co min / max requirements
1- min 100k capital & 100 investors 2-asset / ratio not less than 3 to 1
(Ch. 10) invest co products invest co's what 3 things require shareholder votes
1-chg in invest obj 2-chg sls load policy 3-chg fund classification
(Ch. 10) invest co products four features of MM funds
1-no load 2-fixed NAV 3-check writing priv 4-daily int
(Ch. 10) invest co products what has.. 1-no load 2-fixed NAV 3-check writing priv 4-daily int
MM funds
(Ch. 10) invest co products req'd disclosure for performance history
1, 5 10 yrs (or life of fund if less than 10)
(Ch. 10) invest co products what odes invest co act of 1940 do
defines and regulates invest co's
(Ch. 10) invest co products what act defines and regulates invest co's
invest co act of 1940
(Ch. 10) invest co products name the three types of invest co's
1-face amt certs 2-UIT 3-mgmt co's
(Ch. 10) invest co products what is mutual fund's (ie open ended) POP
NAV per share + sls charge
(Ch. 10) invest co products which open or closed end… act like any other corp security (ie trades secondary, issues debt & equity, prosepct at IPO only)
closed end
(Ch. 10) invest co products calc for sales charge %
(POP - NAV) / POP
(Ch. 10) invest co products NASD max for sls charge %
8.5%
(Ch. 10) invest co products POP calc
NAV / (100% - SC%)
(Ch. 10) invest co products what are 12b-1 charges
dist fee approved approved annually
(Ch. 10) invest co products how often are what are 12b-1 charged
quarterly
(Ch. 10) invest co products limit for 12b-1 charges if desc as no-load
0.25%
(Ch. 10) invest co products what funds must offer reinvestment at NAV
newly formed funds
(Ch. 10) invest co products Ex Div Date - who determines it
BOD
(Ch. 10) invest co products Ex Div Date - when is it.. typically
business day after record date
(Ch. 10) invest co products calc for annual yield
Ann Dividends / POP (does not include cap gains dist)
(Ch. 10) invest co products whats not included in yield calc
cap gains distributions
(Ch. 10) invest co products what is IRC subchapter m
conduit theory… co is regulated invest co if dist min 90% of net income
(Ch. 10) invest co products if co is regulated invest co what earnings is it taked on
retained earnings only
(Ch. 10) invest co products what class of shares offer breakpoints on large purchases
Class A Shares
(Ch. 10) invest co products what causes chng in NAV
1-portfolio value chgs 2-port receives invest income 3-port gains are paid
(Ch. 10) invest co products what does NOT cause chng in NAV
shares sold or redeemed
(Ch. 10) invest co products letter of intent… max
13 mos
(Ch. 10) invest co products letter of intent.. back dated allowed time
90 days