taxes, retirement, and other insurance concepts

what is the number of credits required for fully insured status for Social Security disability benefits?

40

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

any form of life insurance

which of the following statements concerning buy-sell agreements is true?

buy-sell agreements are normally funded with a life insurance policy

in a direct rollover, how is the money transferred from one plan to a new one

from trustee to trustee

all of the following would be different between qualified and nonqualified retirement plans except

taxation on accumulation

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to rollover her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

10,000; No tax consequence

which of the following is an eligibility requirement for all social security income benefits?

have attained fully insured status

a corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

the benefit is received tax free

an insured is under her employer's group life plan. If she terminates her group coverage, which of the following statements is incorrect?

the insured may choose to convert to term or permanent individual coverage

which of the following employees insured under a group plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

those who have been insured under the plan for at least 5 years