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Question 1 of 10
1. Question
Identify the type of property that would have resulted in ordinary income had it been sold on the date of contribution:
Correct
Ordinary income property is any piece of property that would have resulted in ordinary income had it been sold on the date of contribution. The deduction for ordinary income property is limited to the donor’s cost basis.
Incorrect
Ordinary income property is any piece of property that would have resulted in ordinary income had it been sold on the date of contribution. The deduction for ordinary income property is limited to the donor’s cost basis.
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Question 2 of 10
2. Question
Number of benefit periods in a lifetime under Medicare are?
Correct
The benefit period begins when the individual is hospitalized and does not end until the person has been out or 60 days. Individuals may have an unlimited number of benefit periods in their lifetime.
Incorrect
The benefit period begins when the individual is hospitalized and does not end until the person has been out or 60 days. Individuals may have an unlimited number of benefit periods in their lifetime.
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Question 3 of 10
3. Question
Identify the Qualified retirement plans:
I. Profit Sharing
II. Salary reduction plans
III. Employee stock ownership plan
IV. Defined benefit planCorrect
In the type of qualified retirement plan known as a money purchase, the employer must make contributions in an amount determined by a contribution formula: the contributions will be calculated as a percentage of income. Such plans will be subject to a minimum funding standard, regardless of whether or not the company made a profit.
Incorrect
In the type of qualified retirement plan known as a money purchase, the employer must make contributions in an amount determined by a contribution formula: the contributions will be calculated as a percentage of income. Such plans will be subject to a minimum funding standard, regardless of whether or not the company made a profit.
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Question 4 of 10
4. Question
In which type of Qualified retirement plan, the employer must make contributions in an amount determined by a contribution formula?
Correct
In the type of qualified retirement plan known as a money purchase, the employer must make contributions in an amount determined by a contribution formula: the contributions will be calculated as a percentage of income.
Incorrect
In the type of qualified retirement plan known as a money purchase, the employer must make contributions in an amount determined by a contribution formula: the contributions will be calculated as a percentage of income.
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Question 5 of 10
5. Question
According to stock bonus plan, what percentage should be the investment in the sponsoring company’s stock?
Correct
In these plans, the investment in the sponsoring company’s stock is limited to 10%. These plans can be integrated with Social Security.
Incorrect
In these plans, the investment in the sponsoring company’s stock is limited to 10%. These plans can be integrated with Social Security.
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Question 6 of 10
6. Question
What are the basic requirements that a financial planner should now in order to provide a qualified retirement plan?
I. The personnel characteristics and profile of the employee.
II. The profit and cash flow of the business.
III. Job satisfaction of the employee.
IV. The profile of the business owner.Correct
In order to provide a qualified retirement plan that meets all of the needs of the client, a financial planner needs to know: the personnel characteristics and profile of the employee (age, service, compensation, etc.); the profits and cash flows of the business (that is, whether they are variable or stable); the profile of the employees (long- or short-term, full- or part-time); the profile of the business owner; the client’s degree of sophistication and commitment (fiduciary responsibility, administrative costs, etc.); and the types of retirement plans that are available for specific kinds of businesses.
Incorrect
In order to provide a qualified retirement plan that meets all of the needs of the client, a financial planner needs to know: the personnel characteristics and profile of the employee (age, service, compensation, etc.); the profits and cash flows of the business (that is, whether they are variable or stable); the profile of the employees (long- or short-term, full- or part-time); the profile of the business owner; the client’s degree of sophistication and commitment (fiduciary responsibility, administrative costs, etc.); and the types of retirement plans that are available for specific kinds of businesses.
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Question 7 of 10
7. Question
The gross income above $1,000 generated by a qualified retirement plan trust that is carrying on a trade or business not related to the purpose of the trust is called:
Correct
Unrelated business taxable income (UBTI) is any gross income above $1,000 generated by a qualified retirement plan trust that is carrying on a trade or business not related to the purpose of the trust.
Incorrect
Unrelated business taxable income (UBTI) is any gross income above $1,000 generated by a qualified retirement plan trust that is carrying on a trade or business not related to the purpose of the trust.
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Question 8 of 10
8. Question
What is the applicable age for the penalties for premature distributions?
Correct
Individuals will be subject to penalties for premature distributions if they receive a distribution before the age of 59.5. These distributions will be subject to a 10% nondeductible penalty and will be taxed as ordinary income.
Incorrect
Individuals will be subject to penalties for premature distributions if they receive a distribution before the age of 59.5. These distributions will be subject to a 10% nondeductible penalty and will be taxed as ordinary income.
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Question 9 of 10
9. Question
Identify a form of social insurance in the United States that is designed to help retirees pay expenses when their income has been reduced because they have entered into retirement.
Correct
Old-Age, Survivors, and Disability Insurance, also known by the acronym OASDI, is a form of social insurance in the United States that is designed to help retirees pay expenses when their income has been reduced because they have entered into retirement. OASDI is more commonly called Social Security.
Incorrect
Old-Age, Survivors, and Disability Insurance, also known by the acronym OASDI, is a form of social insurance in the United States that is designed to help retirees pay expenses when their income has been reduced because they have entered into retirement. OASDI is more commonly called Social Security.
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Question 10 of 10
10. Question
Identify the assets that are subject to probate:
I. Assets held as common law.
II. Assets held by tenancy in common.
III. Assets disposed off by will.
IV. Contract proceeds that are payable to the estate.Correct
The following assets are subject to probate: assets in which the decedent has sole title, assets held by tenancy in common, assets held as community property, assets disposed of by will, and contract proceeds that are payable to the estate.
Incorrect
The following assets are subject to probate: assets in which the decedent has sole title, assets held by tenancy in common, assets held as community property, assets disposed of by will, and contract proceeds that are payable to the estate.