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Wrong Answers Retirement > Wrong Answer 85 question quiz 3 > Flashcards

Wrong Answer 85 question quiz 3 Flashcards

1
Q

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

A

No

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2
Q

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

A

1998

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3
Q

Whats the gain in a whole life policy?

A

CV-basis.

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4
Q

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

A

no

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5
Q

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

A

yes

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6
Q

How many years of college does AOC cover?

A

4 years post secondary

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7
Q

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

A

no

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8
Q

Can the life learner credit be used for a masters

A

yes

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9
Q

Can AOC credit be used for Masters

A

no

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10
Q

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

A

no

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11
Q

Does a negative NPV indicate a profitable investment

A

yes

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12
Q

If the NPV is 0 what does that mean?

A

met rate of return

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13
Q

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

A

yes

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14
Q

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

A

No

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15
Q

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

A

FIFO

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16
Q

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

A

When the minor turns 21.

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17
Q

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

A

First become irrevocable then would turn into a family trust.

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18
Q

What does the Federal Reserve do?

A

it influences money and credit

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19
Q

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

A

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

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20
Q

Can someone collecting SSDI collect past their FRA?

A

no the cease at/after

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21
Q

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

A

no only applies to 401ks and certain 403bs

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22
Q

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

A

2 years

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23
Q

What does a dollar weighted return calculate?

A

IRR

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24
Q

What does unilateral mean in a disability policy?

A

The insured pays a premium to insurance company to cover perils

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25
Q

What does Non-cancelable continuation mean?

A

premiums are not allowed to increase in the future.

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26
Q

Can profit sharing plans be integrated with SS?

A

yes

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27
Q

Are profit sharing plans flexible?

A

yes

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28
Q

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

A

yes but deductibility stops at 25%

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29
Q

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

A

yes and terminate the relationship

30
Q

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

A

yes

31
Q

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

A

yes

32
Q

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

A

yes

33
Q

What is a section 125 plan

A

FSA

34
Q

Is an FSA subject to FICA and FUTA?

A

no

35
Q

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

A

LTCG

36
Q

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

A

no sale occurred

37
Q

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?

A

yes and the DB is includable in the purchasers estate.

38
Q

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

A

yes

39
Q

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?

A

yes

40
Q

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

A

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

41
Q

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

A

yes

42
Q

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

A

yes

43
Q

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

A

80

44
Q

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

A

Profit Share

45
Q

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

A

No

46
Q

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

A

yes

47
Q

Whats the replacement value of a home

A

FMV less land

48
Q

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

A

80%

49
Q

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

A

damages

50
Q

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

A

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

51
Q

Are profitability projections included in corporate annual reports?

A

no misleading

52
Q

Do prepaid tuition plans cover room and board?

A

no

53
Q

Are prepaid tuition plans affected by family contributions

A

no

54
Q

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

A

subject to creditors

55
Q

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

A

the year prior

56
Q

What are the benefits of an HO 15

A

They allow for a more generous personal prop limit

57
Q

Call all of these be done if code of ethics is violated?

Private censure

II. Public letter of admonition

III. Suspension IV. Revocation

A

yes

58
Q

Does a child in care apply to a disabled child

A

yes

59
Q

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

A

no

60
Q

Whats the limit for gold coin coverage on HO?

A

$200

61
Q

How much is silver covered under HO for theft?

A

$2,500

62
Q

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

A

yes and not deductible

63
Q

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

A

Life insurance.

64
Q

Are strips subject to default risk

A

No printed by the gov

65
Q

what is a wealth replacement trust

A

ILIT

66
Q

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.

A

Wealth replacement trust (ILIT)

67
Q

Is a 1 year cd liquid?

A

yes

68
Q

Fiscal policy falls under whom?

A

the federal government

69
Q

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

A

reduce federal income taxes

70
Q
A

Wrong Answers Retirement (4 decks)

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