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Current Annual per person Gift Tax Exclusion is:

$15,000

IRS maximum annual contribution to a 401(k) plan for an employee age 51 is:

$25,000 $19,000 + $6,000 after age 50 catch up phase

Based on 2018 Federal Tax Reform legislation, the Estate Tax exemption will reset in 2026 to:

$5 million

Michael has a severe knee injury resulting in total medical expenses of $16,500. He has a $1,000 calendar year deductible, 80-20 coinsurance, $5,000 stop loss. What amount of the medical expenses will the insurance company pay?

12,400 16,500-1,000=15,500 0.2 x 15,500= 3,100 15,500-3,100= 12,400

Minimum hours per week for being classified by ACA as a full-time equivalent employee is:

30

Employer has 75 employees and provides group health insurance, but the premium is too expensive based on ACA guidelines. 10 employees purchase insurance through the Exchange. What is Employer Penalty?

30,000

The 2021 Estate Tax rate is :

40%

Minimum number of full time equivalent employees for employer to be subject to the ACA mandate is:

50

Ellen is 40% vested in a 401(k). She decides to leave her employer and start a Financial Advising LLC. Her aggregate 401(k) balance is $10,000 ($6,000 employee and $4,000 employer match). What is her vested balance for transfer to the LLC?

6000 + 4000(0.04) = 7,600

Assets in estate for estate tax purposes include:

All assets

All of the following are advantages of the 401(k) except:

Can not transfer the vested balance to the new employers following a job change

Which of the following would qualify as a 401(k) hardship distribution?

College Expenses

Common 401(k) mistakes include all of the following except:

Contributing more than 5%

ACA Health Policies must provide all of the following coverages except:

Dental

The best way to minimize investment risk in the 401(k) is:

Dollar Cost Averaging

Benefits of a Revocable Living Trust include all of the following except:

Eliminate need for Will

Gifts in excess of $15,000 per person annually and excess of the lifetime exemption of $11.2 million are taxed at:

Estate tax rate

The Grantor of the Revocable Living Trust can not be the Beneficiary?

False

N.C. Exchange Operated By:

Federal Government

ACA premiums are based on all of the follow except:

Gender

All of the following regarding Health Savings Accounts are True except:

HSA funds not spent over next year. roll over

ACA policies include all of the following provisions except:

Lifetime policy limits

Life-time Annuity payments from a 401(k) after age 55 are:

Ordinary income

Disadvantages of a Revocable Living Trust include all of the following except:

Potential increase in income tax

Which of the following is True regarding the Revocable Living Trust?

RLT is used to minimize probate fees

Group Insurance Best Practices includes all of the following except:

Select 70-30% coinsurance

A-B Trust is designed to minimize the estate tax at death of:

Surviving Spouse

All of the following about 401(k) loans are True except:

Tax and 10% penalty apply

A federal premium subsidy is available only to ACA policyholders who apply :

Through the federal exchange

In the absence of a legal Will, property at death is distributed:

To beneficiaries based on state law

A General Power of Attorney is necessary in addition to a Health Care Power of Attorney.

True

The Grantor of the Revocable Living Trust can also be the Trustee?

True

All of the following are True regarding the health insurance deductible except :

applies per sickness

Stop Loss in health insurance is:

cap on co-insurance and deductible

Property eligible to be placed in a Revocable Living Trust includes:

property titled in a business name

HSA withdrawals for qualified medical expenses are considered :

tax free

All of the following are True regarding the Stop Loss except:

the conisurance applies before the application of the deductible