401 k plan - Study guides, Class notes & Summaries

Which type of insurance protects an agent and even pays claims if a lawsuit is brought against the agent as a result of failing to provide a service to a client? - Errors and Omissions Insurance Which of the following terms is known as the voluntary relinquishment of a given right or privilege? - Waiver This Supreme Court case placed the regulation of insurance within the authority of the federal government by defining insurance as a form of interstate commerce? - United States v. Southeastern...

A credit card is issued to John and Maria Davis. This month, John charges $100 and Maria makes no charges. When the bill is received who is legally responsible for paying the $100 - Both John and Maria A factor that can cause the price of a stock to DECREASE is the company - lowering its expectations of future earnings. A good financial goal should - be achievable in five years. A landlord never received the rent check sent by the renter two weeks ago. What is the first action the renter ...

General Financial Literacy Course - Utah, Financial Literacy State Test Latest Update Graded A+ 401K A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis. 4...

Errors and Omissions Insurance - Which type of insurance protects an agent and even pays claims if a lawsuit is brought against the agent as a result of failing to provide a service to a client? Waiver - Which of the following terms is known as the voluntary relinquishment of a given right or privilege? United States v. Southeastern Underwriters Association (1944) - This Supreme Court case placed the regulation of insurance within the authority of the federal government by defining insurance a...

401 k plan - Answer A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars. Absolute Assignment v. Collateral Assignment - Answer Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collateral: A temporary and/or revocable transfer of benefits by the policyowner. Accelerated Death Benefit - Answer Policy provision that allows full or partial payment of the policy's death be...

Z owns a disability income policy with a 30 day elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. He then becomes disabled from an accident on February 1 and the disability last until July 1 the same year. She will become eligible to receive benefits starting on?Answer - March 1. The elimination period is the period of time between the onset of a disability, and the time you're eligible for benefits. It is best thought of as a deductib...

Select from the choices below the best description of a speculative risk? - Answer Involving the possibility of a gain in addition to the uncertainty of loss If there is a material change in an MEC contract, what is the first thing needing to be done? - Answer Another 7 pay test Which of the following is not taxable? - Answer Fixed amount installments A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty tax unless: - Answer It was used as...

An employer plans to use corporate-owned life insurance to informally fund a nonqualified deferred compensation agreement and wants flexibility regarding investment choices. Which one of the following types of life insurance should this employer choose? correct answersVariable life insurance The latest economic reports have been gloomy, and the stock market is in a protracted slump. Most of your regular stock customers are selling out their positions. A new client, Mr. Jones, sees these condi...

Income - ANSWER-Earnings received as wages, rent, profit, or interest Wages - ANSWER-Payment for work Salary - ANSWER-Payment for work usually calculated in periods of a week or longer, tied to specific duties Discretionary income - ANSWER-Amount of income available for spending after the essentials have been taken care of (food, clothing, shelter) Direct deposit - ANSWER-Used to transfer money directly from employer's payroll to your checking or savings account Employee benefits...

Once the employer has computed the employee's gross pay, the next step is: correct answers to deducted mandatory, voluntary, and mandated amounts After computing employee gross pay, the next step is to: correct answers subtract pre-tax deductions Daniel is a new employee looking at contributing to a 401(k) offered through the company. How will his contributions affect his tax liability? correct answers -No change to FICA tax liability -Lower federal income tax The purpose for using gr...