Series 66 Ch 11 Quiz

A married couple wants to contribute money to their child's 529 Education Savings Plan. What is the maximum federal gift tax exclusion that can be made using five year averaging?

$150,000

For the 2020 tax year, the maximum contribution allowed to a Roth IRA for a person over 50 years of age is?

- $7,000 - in 2020, max contribution was $6,000 with $1,000 catch up over 50

Qualified retirement plans must provide a written Investment Policy Statement. Under ERISA interpretations, all of the following items must be included in the Investment Policy Statement except:

- Tax treatment of some of the specific investments

Which of the following would be the best choice for a married couple with a high income level wishing to invest money in the stock market for their child's education?

529 Savings Plan

Which of the following represents the maximum age when withdrawals must start from a Traditional Individual Retirement Account before a penalty is assessed?

72

In 2020, a single person who is not an active participant in a pension or profit-sharing plan has earned income of $70,000 and wants to establish an Individual Retirement Account. Which of the following is TRUE?

An IRA can be established and up to $6,000 can be contributed on a tax-deductible basis.

A customer contributes the maximum $2,000 to an educational savings account which she will use for elementary school education costs. This account is most likely what type?

Coverdell Account

Which of the following is true about a defined benefit plan?

High salaried employees with only a few years to retirement benefit the most.

Which of the following characteristics would be beneficial for an employer if the employer decided to use a non-qualified deferred compensation retirement plan for employees?

In the event that an employee is terminated, benefits earned up to that point may be forfeited.

An investor interested in obtaining an Official Statement for a particular state's 529 Plan would contact which of the following?

MSIL - Municipal Securities Information Library

Under ERISA, which of the following is correct regarding covered call writing:

May be used it if fits in the plans overall objectives

When must a distribution from a Keogh Plan begin?

No later than in the month of April of the year following the year in which the plan holder turns 72.

A 55-year old customer needs $60,000 for his child's college education and withdraws the necessary funds from his IRA. The customer is subject to which of the following tax implications?

Regular income tax on withdrawals, but no penalty tax is applicable

Which of the following investments allow a maximum contribution limit of 100% of earned income, not to exceed $6,000 (2020), assuming the investor is less than 50 years of age?

Traditional IRA

Qualified retirement plans must provide a written Investment Policy Statement. Under ERISA interpretations, all of the following items must be included in the Investment Policy Statement:

[A]the client/participant's investment goals and objectives [B]risk tolerance and liquidity requirements of the client/participant [C]time horizon

Which of the following would be eligible to establish a 403b plan? [A]Athletic teams [B]Church [C]Corporation [D]Limited partnerships

[B]Church

All of the following would be considered to be a plan fiduciary under ERISA except: [A]the custodian in charge of plan assets [B]the tax preparer for the plan [C]the individual selecting the plan's IA [D]the plan's IA

[B]the tax preparer for the plan

An investment policy statement would NOT include: [A]recommended allocations among differing asset classes [B]expected returns of the recommended strategy and the expected range of these returns [C]strategies used for selecting specific stocks in the equity portion of the portfolio [D]disclosure of the goals and objectives

[C]strategies used for selecting specific stocks in the equity portion of the portfolio

A 401(k) plan is established by a:

for-profit corporation with contributions made by employees as a salary reduction

All of the following may be used by employees of a for profit corporation except:

tax deferred annuity