ExamFX Taxes, Retirement, and other Insurance concepts
Partially insured
an individual must have earned 6 credits during the last 13-quarter period.
The amount of the distribution is reduced by the amount of a 20% withholding tax.
A 60-year old participant in a 401(K) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
Life settlement Broker
is a person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract. Life settlement brokers represent only the policyowners.
Welfare benefits
All of the following benefits are available under Social Security EXCEPT A. old-age and retirement B. Disability benefits. C. Death benefits. D. Welfare benefits
Fully insured
If an insured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is
The owner
In a life settlement contract, whom does the life settlement broker represent?
At least 1,000 employees
Simple Plans require all of the following EXCEPT A. Employees must receive a minimum of $5,000 in annual compensation. B. At least 1,000 employees. B. No other qualified plan can be used D. No more than 100 employees.
100%
What percentage of a company's employees must take part in a noncontributory group life plan?
Buy-sell agreement
A life insurance policy used to fund an agreement that contractually establishes the intent of someone to purchase a business upon the insured business owner's death is a
Cross-purchase plan
A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a
Have attained fully insured status
Which of the following is an eligibility requirement for all social security disability income benefits?
The cash value available to the policyowner
Which of the following is an example of liquidity in a life insurance contract?
An individual not covered by an employer-sponsored plan who has earned income.
Who can make a fully deductible contribution to a traditional IRA?
The insurer will pay the full death benefit from the group policy to the beneficiary.
An employee quits his job on May 15 and doesn't convert his Group Life Policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
A portion of the benefit up to a limit is tax free; the rest is taxable income.
An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?
6 credits
The minimum number of credits required for partially insured status for Social Security disability benefits is
they are tax deferred until withdrawn
Under a Simple plan, which of the following is TRUE regarding taxation on both contributions and earnings?
