federal taxation quiz
a policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity this nontaxable transaction is called
1035 exchange
an employee quits her job where she has a balance of 10k in her qualified plan if she decides to do direct transfer from her plan to a traditonal ira how much will be transferred from one plan to another and what is taxed
10k no tax consequences
an irs uses immeowner is nearly 75 years ols when he decides to collect distributions what kind of penalty would the ira owner pay diate annuities to pay out benefits the ira
50% tax on the amount not distru=ivbuted
which of the following is not an allowable 1035 exchnage
a whole life policy is exchanged for a term insurance policy
which conceopt is associated with exclusion ratio
annuities payments
which concept is associated with exclusion ratio
annuities payments
which of the following is associated with exclusion ratio
annuitites payments
what type of annuity activity will cause immediate taxation of the interest earned
aurrendering the annuity for cash
when contributions to an immediate annuity are made with before tax dollars which of the following are true
distributions are taxable
which of the following tersm is used to name the nontaxed of unused premium
dividend
if taken as a lump sum life insurance proceeds to beneficiary are passed
free of federal taxation
which of the following statement is true concerning whole life insurance
lump sum death benefits are not taxable
which of the following statements regarding the taxation of modified endowedmemnt contracts are false
withdrawels
which of the following describes the taxation of an annuity when money is drawn out during accumulation period
withdrawn amounts are taxed on last in first out
what is the tax consequence of amounts receive3d from an ira after the money left in tax deferred
income tax distrbuitions and no pnealty
what is the purpose of a 7 pay test
it determines if the insurance policy is a mec
what is the main purpose of the 7 pay test
it determines if the policy is a mec
which of the following statements is true concerning whole life insurance
lump sum death benefits are not taxable
which of the following is not true regarding policy loans
money borrowed from cash value is taxable
whihc of the following is true regarding policy loans
money borrowed from cash value is taxable
if an insured surrenders his life policy which statemtn is true regarding the cahs value of the policy
qit is only taxable if the cash value exceeds the amount paid for premiums
an applicant buys a nonqualified annuity but dies before the starting date. for which of the following beneficiaries would the interest accumulated in the annuity not be taxable
spouse
during the accumulation period in a nonqualified annuity what are the tax consequences pof a withdrawl
taxable interest will be withdrawn first and the 10% penalty will be imposed if under the age 59.5
a 60 yeawithin 60 days which of the following is true r old participant in a 401k plan takes a distribution and rolls it over to an ira
the amount mof the distribution is reduced by the amount of a 20 %
a 60 year old participating in a 401k plan takes a distribution and rolls it over to ira within 60 days which of the following is true
the amount of distribution is reducded by the amount of 20%
j transferred his life insurance policy to his son two years before his death. which of the following is true
the entire face value of the policy will be included in j's taxable estate
when would life insurance policy proceeds be included in the insured's taxable estate
when there are any incidents of ownership at the time of death.