Which statement about profit-sharing plans is correct?
Contribution limits for profit-sharing plans are the same as those that apply to all defined contribution plans.
Which statement regarding defined benefit employer retirement plans is correct?
Individual accounts are typically NOT set up for individual employees in a defined benefit plan.
If an employer sets up a profit-sharing plan for its employees, which of the following statements is correct?
The employer must make substantial and recurring contributions for the plan to maintain its qualified status.
Section 457 plans are qualified retirement plans that are reserved for employees of which type of organization?
state and local government units
If a person receives funds directly from a qualified pension plan and intends to roll them over to an IRA, within how many days must the rollover be completed?
60 days
Generally speaking, which of the following most correctly describes the taxation of a Roth IRA qualified distribution?
Distributions are generally tax free.
Anne turned 72 this year on March 15. By what date does she have to begin taking distributions from her retirement plan?
April 1 next year
Jason, age 27, earns $125,000 a year working for a small computer company that does not have a qualified retirement plan. If Jason sets up and contributes to a traditional IRA this year, which of the following statements is correct?
Jason can deduct the full amount that he contributes to his traditional IRA.
All the following statements regarding Section 529 prepaid tuition plans are correct EXCEPT:
Prepaid tuition plans can be used to cover elementary and secondary school tuitions as well as college tuitions.
In which one of the following ways are Section 529 prepaid tuition plans and education savings plans similar?
tax treatment of distributions
Which of the following correctly identifies qualified educational expenses that can be covered under a Section 259 prepaid tuition plan?
tuition and mandatory fees only
Which of the following is a type of Section 529 plan that lets parents "prepay" a child's tuition at participating in-state public colleges and universities?
prepaid tuition plan
What criteria are not used when assessing whether an annuity is suitable for a specific applicant?
sex and ethnicity
Requirements related to the suitability and supervision of annuity transactions are satisfied if the suitability requirements of which organization are met?
Financial Industry Regulatory Authority (FINRA)
May an insured who owns a policy and has reserved the right to change the beneficiary use the policy as collateral security for a loan without the consent of the beneficiary?
The beneficiary's consent is not required.
For how long must an insurer or producer keep records of information used to determine the suitability of an annuity for a particular client and recommend the transaction?
ten years
Justine leaves her position with her employer on March 1. She wants to convert her employer's group life insurance coverage to an individual policy. Which action must she take in order to convert her group coverage?
submit an application and pay the premium within 31 days of March 1
A group life insurance policy may be issued to an employer to insure its employees if all of the following requirements are met EXCEPT:
The insured employees determine the amounts of insurance covered under the policy.
Which of the following groups is not eligible for group life insurance coverage?
neighborhood groups
Suzanne's coverage under her group life insurance policy ended on December 31. Within how many days must she apply for a conversion policy?
31 days
A broker or agent must deliver which of the following documents to a policyowner who buys a life insurance policy that replaces another?
Notice Regarding Replacement
How long is the free-look period when replacement is involved in an insurance transaction?
30 days
When replacement is involved in an insurance transaction, the replacing insurer must notify existing insurers of the replacement within how many days after receiving the application?
five business days
The Notice Regarding Replacement must include all of the following EXCEPT:
the suitability criteria