Retirement Flashcards
Roth IRA are true
Contributions made after tax dollars
Earnings can accumulate tax free
IRA
Contributions are non deductible
Withdrawals after 591/2 can be tax free
Coverdell account are correct
Contributions are not tax deductible
If used for education expenses withdrawals are not taxable
Required RMDs
No later than April 1st of year after turning 72
Retiree is paid an annual amount equal to 30% of the average of his last five years salary Is it Profit sharing Defined contribution Deferred compensation Defined benefit
Defined benefit
Establishes in advance the payout received by the retiree
Based on earnings and yrs of service
An agent can never open which type of account
They cannot open an individual account in the name of a third person
Ira not tax deductible and is taken in a lump sums at 60
Portion representing principal from non deductible contributions is tax free
Balance is taxable at ordinary income
Variable annunities are registered
State insurance commission
Securities and exchange commission
Try to remember as two commissions
A corporate profit sharing plan must be set up under
TRUST
All corporate pension and profit sharing plans must be set up under trust agreements
Which type of anonymity would be a good investment for a client who wants additional monthly income once retired but wants these funds to have NO MARKET RISK exposure
Fixed-annuity with a discussion regarding purchasing power risk
( the fixed payment that the annuitant receives loses purchasing power over time as a result of inflation )
If a corporation has an unfounded pension liability, this means that
Expected future value of fund assets is less than projected benefit claims
Roth IRA and Coverdell ESA not available to
High earning individuals
Income phase out range 110k or couple 220k
When a customer instructs a rep to transfer and ship rep instructs the margin dept to transfer ownership into
Customers name and deliver securities to the customer
