All of the following are general requirements of a qualified plan EXCEPT
The plan must provide an offset for social security benefits
All of the following would be different between qualified and nonqualified retirement plans EXCEPT
Taxation on accumulation
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT
At distribution, all amounts received by the employee are tax free
An insured had paid only part of her total number of IRA premiums before she died. What effect will this have on the insured's estate?
Only the premiums paid will be included in the estate
Death benefits payable to a beneficiary under a life insurance policy are generally
Not subject to income taxation by the Federal Government
During the accumulation period in a nonqualified annuity, what are the tax consequences of a withdrawal?
Taxable interest will be withdrawn first and the 10% penalty will be imposed if under age 59.5
Employer contributions made to a qualified plan
Are subject to vesting requirements
For a retirement plan to be qualified, it must be designed for the benefit of
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?
In life insurance policies, cash value increase
Grow tax deferred
In a direct rollover, how is the money transferred from one plan to the new one?
From trustee to trustee
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
Life insurance death proceeds are
Generally not taxed as income
The advantage of qualified plans to employers is
What method is used to determine the taxable portion of each annuity payment?
The exclusion ratio
What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary
Income tax on distributions and no penalty
What is the penalty for IRA distributions that are below the required minimum for the year?
When a beneficiary receives payments consisting of both principal and interests portions, which parts are taxable as income?
When contributions to an immediate annuity are made with before-tax dollars, which of the following is true of the distributions?
Distributions are taxable
When must an IRA be completely distributed when a beneficiary is not named?
December 31 of the year that contains the fifth anniversary of the owner's death
Which concept is associated with "exclusion ratio"?
Which of the following is true regarding taxation of dividends in participating policies?
Dividends are not taxable
Which of the following describes the tax advantages of a qualified retirement plan?
The earnings in the plan accumulate tax deferred
Which of the following terms is used to name the nontaxed return of unused premiums?
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable