Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
Generally, the premium paid for personal life insurance is
|
A. Fully tax deductible
B. Partially tax deductible C. Not tax deductible D. Taxed |
|
|
Which of the following is NOT true regarding policy loans?
|
A. Money borrowed from the cash value is taxable
B. Policy loans can be repaid at death C. An insurer can charge interest on outstanding policy laons D. A policy loan may be repaid after the policy is surrendered |
|
|
Which of the following is NOT a requirement of a qualified plan?
|
A. It must be temporary.
B. It must have a vesting schedule. C. It cannot discriminate in favor of highly paid employees. D. It must be written and communicated to all participants. |
|
|
If a life policy does not pass the 7-pay test, that policy
|
A. Must be canceld
B. Becomes a Modified Endowment Contract C. Is considered a Limited-Pay policy D. Must increase its premiums for additional 7 years |
|
|
The 10% early withdrawal penalty from an IRA can be waived for
|
A. Catastrophic medical expenses
B. Any type of disability C. Withdrawal at age 55 D. A down payment under %10,000 on a second home |
|
|
What qualifies an individual to contribute to an IRA?
|
A. Retirement income
B. Earned income C. Investment income D. Any income |
|
|
All of the following persons who do not have an employer sponsered retirement plan would be eligible to set up contributions to a traditional IRA EXCEPT
|
A. Jason, age 26, an independent contractor
B. Arlene, age 72, a nurse C. Marsha, age 40, a proofreader D. Tom, age 60, a mechanic |
|
|
What is the requirement for a number of employees in a SIMPLY plan?
|
A. 100 or more
B. No more than 100 C. 50 or fewer employees D. At least 50 |
|
|
The advantage of qualified plans to employers is
|
A. Tax deductible contributions
B. Tax free earnings C. No lump-sum payments D. Taxable contributions |
|
|
For personal life insurance, the lump-sum death benefit is received
|
A. Tax free
B. On a last-in-first-out basis C. As taxable income D. With taxable interest |
