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1. "Bridge jobs" describe intervals of partial retirement for older employees. Which one of
the following statements concerning bridge jobs isn't true?
2.
3. They typically constitute a circulate up the socioeconomic ladder, from less-skilled to
extra-skilled jobs.
4. They are much less probably to consist of medical health insurance coverage.
5. They generally allow extra flexibility than employees' previous complete-time jobs. -
ANS-They normally represent a pass up the socioeconomic ladder, from much
less-professional to extra-professional jobs.
6.
7. Bridge jobs normally constitute a circulate down the socioeconomic ladder, from
more-skilled to less-professional jobs or from white-collar to blue-collar jobs. They are
also probable to pay less and are less in all likelihood to offer pension plans or medical
insurance insurance. On the opposite hand, because of their brief or part-time nature,
bridge jobs usually allow greater flexibility than full-time career positions.
8. "Golden parachute" agreements may additionally include all of the following, besides
9. coins.
10. Organisation stock.
11. Scientific and life coverage.
12. Reduced pension benefits. - ANS-reduced pension blessings.
13.
14. Golden parachute agreements might also encompass diverse combinations of coins,
enterprise stock, scientific and existence coverage, more pension blessings, and
different blessings.
15. 2017 Earnings cap for singles? - ANS-$sixteen,920
16. A Cash Flow statement is used to calculate what? And what does it have on it? -
ANS-Inflows and out flows. Not belongings and liabilities.
17. A direct rollover is a transaction wherein advantages from a certified plan are rolled over
immediately to
18.
19. the character with a take a look at of their call.
20. A participant's checking or savings account.
,21. Another eligible retirement plan.
22. A conduit IRA. - ANS-some other eligible retirement plan.
23.
24. A direct rollover may be carried out by way of any affordable way of direct charge to an
eligible retirement plan, consisting of a wire switch or mailing of a test negotiable only via
the plan's trustee. Using a conduit IRA is a method of an indirect rollover.
25. A distribution can't be crafted from a TSA till the employee does which of the following? -
ANS-Distributions can be made whilst an worker separates from service, attains age
591⁄2, becomes disabled or dies, or qualifies underneath trouble policies.
26. A penalty is imposed for failing to take the desired minimum distribution (RMD).
27.
28. 10%
29. 20%
30. 50%
31. 100% - ANS-50%
32.
33. The penalty for failing to take the RMD is 50% of the distinction between what ought to
have been taken and what changed into taken.
34. A strength of lawyer is an effective tool for disability planning if
35. it's far a widespread strength of attorney.
36. It's miles a durable electricity of lawyer.
37. It is a springing energy of attorney.
38. Each b and c. - ANS-each b and c.
39.
40. A long lasting power of attorney maintains after a essential's incapacity, and a springing
strength of lawyer turns into powerful when the important will become incapacitated. The
wellknown power of legal professional isn't always an effective device for disability
making plans for a simple purpose: The agent's authority ceases whilst the principal
either dies or turns into incapacitated.
41. A certified plan ought to withhold 20% of any distribution this is
42.
43. a part of a trustee-to-trustee switch.
44. Rolled to a conduit IRA.
45. Part of an entire life annuity.
46. Going to be rolled over to any other certified plan inside 60-days. - ANS-going to be
rolled over to every other qualified plan inside 60-days.
47.
48. The 20% withholding rule does now not follow to direct rollover distributions or
trustee-to-trustee transfers; the 20% withholding rule does practice to indirect rollover
distributions, which include a 60-day rollover.
49. A Roth IRA distribution is considered to be "certified" if... - ANS-...A 5-year protecting
period is met and the distribution is made after the attainment of age 591⁄2, dying, or
disability, or if it is made for the purchase of a primary-time domestic (most $10,000).
50. A standardized Medigap plan is designed to cowl
,51.
52. lengthy-time period care charges whilst treatment lasts longer than 100 days.
53. Medicare-authorized charges that aren't paid by Medicare.
54. Prices which are considered nonmedical and are not protected by means of Medicare. -
ANS-Medicare-permitted charges that are not paid by means of Medicare.
55.
56. Medigap insurance is designed to supplement Medicare's blessings via filling in some of
what Medicare does not cover, which includes deductibles and coinsurance; it covers
handiest Medicare-permitted charges. Standardized Medigap plans pay handiest for
long-time period care whilst the beneficiary qualifies for advantages from Medicare, and
is constrained to paying the coinsurance from the twenty first via 100th days.
57. A trustee-to-trustee switch is an instance of a
58.
59. direct rollover.
60. Oblique rollover.
61. Conduit rollover.
62. 60-day rollover. - ANS-direct rollover.
63.
64. A trustee-to-trustee switch is an instance of an instantaneous rollover. A 60-day rollover
would be an instance of an oblique rollover. A conduit IRA is used to shift assets from
the certified plan of one corporation to the certified plan of any other company the use of
the conduit IRA as an intermediate step.
65. A worker's number one insurance quantity (PIA) is the quantity they receive from Social
Security if... - ANS-...She or he started out bills at complete retirement age.
66. Active participation in what retirement plans for any a part of a plan year finishing inside
the character's taxable year may restrict his or her capability to deduct contributions to
an IRA? - ANS-a certified pension, earnings sharing, inventory bonus, cash purchase,
SIMPLE
67. 401(ok) plan, or Roth 401(k) plan;
68.
69. a certified plan installed for employees by way of a federal, kingdom, or local
70. authorities or their subdivisions, apart from a Section 457 plan;
71.
72. a tax-sheltered annuity plan (TSA) (additionally called Section 403(b) plan) for
73. employees of public faculties and positive tax-exempt organizations;
74.
75. a simplified employee pension (SEP); or
76.
77. a financial savings incentive healthy plan for personnel (SIMPLE) IRA.
78. Alicia has contributed $eight,000 to a Roth IRA over the past 4 years. The account has
grown to $10,000 with funding earnings. She is dealing with a monetary bind and wishes
to withdraw $9,000. She will should pay profits tax and a 10% penalty on
79.
80. $1,000.
, 81.
82. $eight,000.
83.
84. $9,000. - ANS-$1,000.
85.
86. Since the Roth contributions had been made with after-tax bucks, Alicia can withdraw
her contributions first. She could withdraw the whole $eight,000 that she has contributed
without any tax or penalty. Only $1,000 of her withdrawal could be subject to profits tax
or penalty.
87. All of the following apply to voluntary early retirement packages except
88.
89. they rarely result in court cases in opposition to the organizations presenting the
programs.
90. They provide a hard and fast of incentives to reduce corporate headcount.
91. They gift pluses and minuses for the eligible worker.
92. They ought to be analyzed based totally on their destiny cost. - ANS-they must be
analyzed based totally on their destiny price.
93.
94. Voluntary early retirement incentives provide a set of incentives to lessen corporate
headcount. They present pluses and minuses for the eligible worker that ought to be
evaluated primarily based on their internet gift price. Such arrangements rarely bring
about complaints due to the fact personnel select themselves for termination.
95. All of the following are characteristics of a Qualified Longevity Annuity Contracts
(QLACs) except:
96.
97. receipt of income payments is typically deferred till age 85.
98. The player can pick both a fixed or variable annuity.
99. Up to 25% of a certified plan (or IRA) balance may be used to buy a QLAC and be
exempted from RMD necessities.
100. They are a means of moving durability hazard to an insurance corporation. -
ANS-the player can select both a fixed or variable annuity.
101.
102. QLAC's ought to be constant (not variable) annuities. The different statements are
true regarding QLAC's
103. All of the following are risks to acting an oblique rollover from a certified plan to an
present IRA besides
104.
105. the rollover have to be completed inside a 60-day duration to avoid being taxed.
106. 20% of the gross distribution might be withheld for taxes.
107. The complete distribution might be difficulty to instantaneous taxation. - ANS-the
entire distribution will be concern to immediately taxation.
108.
109. By rolling over assets to an existing IRA, the plan belongings much less the amount
withheld escape instant taxation. Taxes are deferred till the participant starts offevolved
