Question 1

The Pension Benefit Guarantee Corporation (PBGC) covers only ____ pension plans.

Accepted Answer

A)   ​defined-benefit
B)   ​defined-contribution
C)   ​401(k) 
D)   ​qualifiedE) C) and D)
F) A) and B)

Question 2

Sally put $4,000 in her traditional IRA this year.If Sally is in the 25 percent marginal tax bracket,the government actually contributed ____ of that amount for her.

Accepted Answer

A)   ​$1,000
B)   ​$3,000
C)   ​$0
D)   ​$4,000E) A) and C)
F) A) and B) A

Question 3

For Social Security purposes,the full-benefit retirement age is 67 for those born prior to 1960.

Accepted Answer

A) True 
 B)False

Question 4

You immediately benefit from putting money in a tax-sheltered retirement account because you can make the deposits with after-tax money.

Accepted Answer

A) True 
 B)False

Question 5

Federal estate tax would be paid by the beneficiary of the estate.

Accepted Answer

A) True 
 B)False

Question 6

A qualified joint and survivor benefit is an annuity whose payments continue to the surviving spouse after the participant's death,equal to at least ____ percent of the participant's benefit.

Accepted Answer

A)   ​20
B)   ​35
C)   ​50
D)   ​80E) All of the above
F) B) and D)

Question 7

All of your employment income is subject to the FICA tax.

Accepted Answer

A) True 
 B)False

Question 8

If you wait 7-9 years after starting your first full-time to begin saving for retirement,your nest egg at age 67 will likely be about one-half what it would have been if you had started right away.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following pension plan features is (are) especially important to younger workers who anticipate changing jobs more frequently?

Accepted Answer

A)   ​Vesting
B)   ​Portability
C)   ​Integration of benefits
D)   ​Vesting and portabilityE) A) and B)
F) C) and D)

Question 10

Which of the following statements about survivor's and disability benefits under defined-benefit plans is false?

Accepted Answer

A)   ​Most employer-sponsored retirement plans provide survivor's benefits.
B)   ​If spousal benefits are waived,the worker's retirement benefit will be higher.
C)   ​The covered worker can cancel spousal benefits only if the spouse consents in writing.
D)   ​Disability and survivor's benefits are typically the same amount as retirement benefits.E) All of the above
F) B) and C)

Question 11

The process by which a decedent's estate is settled and the assets distributed by the courts to legal heirs is called

Accepted Answer

A)   ​intestate.
B)   ​community property distribution.
C)   ​probate.
D)   ​estate planning.E) B) and C)
F) All of the above

Question 12

A positive aspect of defined-benefit plans is that

Accepted Answer

A)   ​they are more transferable than defined-contribution plans.
B)   ​they generally permit earlier vesting than defined-contribution plans.
C)   ​the funds are out of reach of corporate creditors.
D)   ​the plans include disability and survivor's benefits.E) A) and B)
F) A) and C)

Question 13

If you have a nonworking spouse,that person may contribute to a spousal IRA.

Accepted Answer

A) True 
 B)False

Question 14

There are limits on the maximum amount of income an employee may contribute to an employer-sponsored plan.

Accepted Answer

A) True 
 B)False  True

Question 15

A(n) ____ plan is a benefit plan through which the employer makes tax-deductible contributions of company stock into a trust;these contributions are then allocated into accounts for individual employees.
Employee stock-ownership

Accepted Answer

A)   ​employee stock-ownership
B)   ​profit-sharing
C)   ​thrift and savings
D)   ​deferred-compensationE) B) and C)
F) A) and C)

Question 16

It is very difficult to estimate your likely future Social Security retirement benefit.

Accepted Answer

A) True 
 B)False

Question 17

All of your employment income is subject to the Medicare tax.

Accepted Answer

A) True 
 B)False

Question 18

Transfers at the death of a spouse usually are very uncomplicated because spouses generally own property together under​

Accepted Answer

A)   ​a valid will.
B)   ​joint tenancy with right of survivorship.
C)   ​life insurance.
D)   ​a trustE) A) and B)
F) A) and C) B

Question 19

How many years are you allowed for correcting any errors in your earnings history as listed in your Social Security Estimate?

Accepted Answer

A)   ​1
B)   ​3
C)   ​5
D)   ​7E) A) and B)
F) A) and C)

Question 20

All property included in an estate must go through probate.

Accepted Answer

A) True 
 B)False

Exam 17: Retirement Planning

The Pension Benefit Guarantee Corporation (PBGC) covers only ____ pension plans.

Correct AnswerverifiedShow Answer

Sally put $4,000 in her traditional IRA this year.If Sally is in the 25 percent marginal tax bracket,the government actually contributed ____ of that amount for her.

Correct AnswerverifiedA

For Social Security purposes,the full-benefit retirement age is 67 for those born prior to 1960.

Correct AnswerverifiedShow Answer

You immediately benefit from putting money in a tax-sheltered retirement account because you can make the deposits with after-tax money.

Correct AnswerverifiedShow Answer

Federal estate tax would be paid by the beneficiary of the estate.

Correct AnswerverifiedShow Answer

A qualified joint and survivor benefit is an annuity whose payments continue to the surviving spouse after the participant's death,equal to at least ____ percent of the participant's benefit.

Correct AnswerverifiedShow Answer

All of your employment income is subject to the FICA tax.

Correct AnswerverifiedShow Answer

If you wait 7-9 years after starting your first full-time to begin saving for retirement,your nest egg at age 67 will likely be about one-half what it would have been if you had started right away.

Correct AnswerverifiedShow Answer

Which of the following pension plan features is (are) especially important to younger workers who anticipate changing jobs more frequently?

Correct AnswerverifiedShow Answer

Which of the following statements about survivor's and disability benefits under defined-benefit plans is false?

Correct AnswerverifiedShow Answer

The process by which a decedent's estate is settled and the assets distributed by the courts to legal heirs is called

Correct AnswerverifiedShow Answer

A positive aspect of defined-benefit plans is that

Correct AnswerverifiedShow Answer

If you have a nonworking spouse,that person may contribute to a spousal IRA.

Correct AnswerverifiedShow Answer

There are limits on the maximum amount of income an employee may contribute to an employer-sponsored plan.

Correct AnswerverifiedTrue

A(n) ____ plan is a benefit plan through which the employer makes tax-deductible contributions of company stock into a trust;these contributions are then allocated into accounts for individual employees. Employee stock-ownership

Correct AnswerverifiedShow Answer

It is very difficult to estimate your likely future Social Security retirement benefit.

Correct AnswerverifiedShow Answer

All of your employment income is subject to the Medicare tax.

Correct AnswerverifiedShow Answer

Transfers at the death of a spouse usually are very uncomplicated because spouses generally own property together under​

Correct AnswerverifiedB

How many years are you allowed for correcting any errors in your earnings history as listed in your Social Security Estimate?

Correct AnswerverifiedShow Answer

All property included in an estate must go through probate.

Correct AnswerverifiedShow Answer

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A

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True

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Transfers at the death of a spouse usually are very uncomplicated because spouses generally own property together under

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B

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