Question 1

"Early retirement age" in a private pension plan is

Accepted Answer

A)  set at age 62 by federal statute.
B)  set at age 59 by federal statute.
C)  the earliest age at which you can retire with reduced pension benefits.
D)  the earliest age at which unreduced pension benefits are first available.

Question 2

ERISA requires that employee contributions to a qualified pension plan

Accepted Answer

A)  vest by the fifth year under cliff vesting.
B)  vest by the tenth year under graded vesting.
C)  vest immediately.
D)  vest by age 65.

Question 3

The Internal Revenue Service approves only IRAs that provide a reliable and safe fund for retirement savings.

Accepted Answer

A) True 
 B)False

Question 4

The refund feature on an annuity guarantees that

Accepted Answer

A)  you will be satisfied with the investment build-up,because you may withdraw your funds at will.
B)  you can withdraw all your contributions at age 59-1/2.
C)  payments will continue until they have at least refunded the cost of the annuity.
D)  the insurance company can refund your payments and terminate your annuity at its discretion.

Question 5

Social Security retirement benefits are determined at the time of retirement and are not subsequently adjusted for changes in the cost of living.

Accepted Answer

A) True 
 B)False

Question 6

For most occupations the law forbids an employer from forcing you into retirement

Accepted Answer

A)  before age 60.
B)  before age 65.
C)  before age 70.
D)  at any age.

Question 7

All employees are eligible for Keogh plans.

Accepted Answer

A) True 
 B)False

Question 8

ERISA established minimum monthly benefits to be paid by all qualified plans.

Accepted Answer

A) True 
 B)False

Question 9

The law requires a qualified pension plan that provides benefits based upon credited years of service to fund you with additional benefits for service beyond normal retirement age.

Accepted Answer

A) True 
 B)False

Question 10

A qualified pension plan must credit you with a year of service if you worked at any time during the current fiscal year.

Accepted Answer

A) True 
 B)False

Question 11

You may be entitled to receive the funds in your retirement plan under which of the following conditions?
I.retirement.
II.disability.
III.termination of employment.
IV.financial hardship.

Accepted Answer

A)  only I
B)  only I and II
C)  only I,II,and IV
D)  I,II,III,or IV

Question 12

You may place as much as you want in an IRA.However,only the first $5,000 is tax-deferred.

Accepted Answer

A) True 
 B)False

Question 13

A firm need not contribute to its qualified profit-sharing plan only in those years it does not earn a profit.

Accepted Answer

A) True 
 B)False

Question 14

Low income earners can receive a tax credit for contributing to an IRA.

Accepted Answer

A) True 
 B)False

Question 15

Employers often match employee contributions to 401k savings plans.

Accepted Answer

A) True 
 B)False

Question 16

Married couples with each spouse having earned income can contribute to separate IRA accounts.

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following investment programs invests the savings fund almost entirely in the sponsoring company's stock?

Accepted Answer

A)  ESOP
B)  SEP
C)  IRA
D)  SRA

Question 18

The government requires that all qualified pension plans vest benefits

Accepted Answer

A)  at least as quickly as one of the mandated vesting schedules.
B)  immediately as prospective benefits are earned.
C)  only after 20 years of continuous employment.
D)  only immediately preceding retirement.

Question 19

With cliff vesting nothing vests before 3 years,but everything is vested in the fifth year.

Accepted Answer

A) True 
 B)False

Question 20

The employer's contribution to a defined benefit plan is based on

Accepted Answer

A)  the number of workers that will survive to age 65.
B)  future returns on investments.
C)  both future survival rate and future returns on investments.
D)  is actuarially determined and,therefore,443 based on all of the above.

Exam 16: Retirement Planning: Planning for Your Long-Term Needs

Employers often match employee contributions to 401k savings plans.

Correct AnswerverifiedShow Answer

The Internal Revenue Service approves only IRAs that provide a reliable and safe fund for retirement savings.

Correct AnswerverifiedShow Answer

A firm need not contribute to its qualified profit-sharing plan only in those years it does not earn a profit.

Correct AnswerverifiedShow Answer

The refund feature on an annuity guarantees that

Correct AnswerverifiedShow Answer

All employees are eligible for Keogh plans.

Correct AnswerverifiedShow Answer

For most occupations the law forbids an employer from forcing you into retirement

Correct AnswerverifiedShow Answer

Which one of the following investment programs invests the savings fund almost entirely in the sponsoring company's stock?

Correct AnswerverifiedShow Answer

Married couples with each spouse having earned income can contribute to separate IRA accounts.

Correct AnswerverifiedShow Answer

The law requires a qualified pension plan that provides benefits based upon credited years of service to fund you with additional benefits for service beyond normal retirement age.

Correct AnswerverifiedShow Answer

The government requires that all qualified pension plans vest benefits

Correct AnswerverifiedShow Answer

With cliff vesting nothing vests before 3 years,but everything is vested in the fifth year.

Correct AnswerverifiedShow Answer

ERISA established minimum monthly benefits to be paid by all qualified plans.

Correct AnswerverifiedShow Answer

Social Security retirement benefits are determined at the time of retirement and are not subsequently adjusted for changes in the cost of living.

Correct AnswerverifiedShow Answer

The employer's contribution to a defined benefit plan is based on

Correct AnswerverifiedShow Answer

A qualified pension plan must credit you with a year of service if you worked at any time during the current fiscal year.

Correct AnswerverifiedShow Answer

ERISA requires that employee contributions to a qualified pension plan

Correct AnswerverifiedShow Answer

Low income earners can receive a tax credit for contributing to an IRA.

Correct AnswerverifiedShow Answer

You may place as much as you want in an IRA.However,only the first $5,000 is tax-deferred.

Correct AnswerverifiedShow Answer

"Early retirement age" in a private pension plan is

Correct AnswerverifiedShow Answer

You may be entitled to receive the funds in your retirement plan under which of the following conditions? I.retirement. II.disability. III.termination of employment. IV.financial hardship.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified