CANNON TRUST LATEST
FUNDAMENTALS EXAM
If the governing instrument is silent with respect to reserves for
depreciation or depletion,
which of the following is the best course for the fiduciary? -
ANSWERS-May exercise discretion
A defined contribution retirement plan: - ANSWERS-allows participants
to share in favorable investment
performance
Which of the following is one of the many difficulties in the
administration of defined benefit
plans? - ANSWERS-Requires actuarial services
Under ERISA guidelines, a fiduciary is any person who meets certain
requirements. Which one of
the following is NOT an ERISA requirement to be a fiduciary? -
ANSWERS-Offers investment advice for free
with respect to plan funds or property
END OF
PAGE
1
, CANNON TRUST LATEST
FUNDAMENTALS EXAM
What is the tax penalty for taking required minimum distributions that
are too little or too late? - ANSWERS-50%
The required minimum distribution is calculated by: - ANSWERS-
Dividing the total account balance by the
number of years the account holder is expected to live (according to the
Uniform Table)
The following distributions are all "eligible rollover
distributions" (i. e., subject to UCA 92
withholding), EXCEPT: - ANSWERS-Loans
Which of the following is an example of a defined benefit plan? -
ANSWERS-Pension Plan
A client, age 73, comes to you concerned he has received insufficient
distributions from his IRA.
If, in fact, he has not been taking out enough, how much of a penalty
must he pay? - ANSWERS-50% tax on
the amount the distribution fell short of the required payment.
END OF
PAGE
2
, CANNON TRUST LATEST
FUNDAMENTALS EXAM
Which of the following would result in a 20 percent withholding from a
qualified retirement
distribution? - ANSWERS-A participant receives a rollover distribution
from his qualified plan and deposits
them in an IRA
Peter turned 70 on March 1 of this year. He died the next day. The
beneficiary of his traditional
IRA is his 67 year old brother, Jack. If Jack is to receive the funds in
Peter's IRA, what is the latest
date he can delay distribution? - ANSWERS-December 31 of the year
following the 10th anniversary of
Peters death.
Dan died at the age of 67, with $250,000 in his 401 (k) plan. His
daughter, Carey, is the
beneficiary. If Carey makes no alternative election, these funds must be -
ANSWERS-Distributed within ten
years following the death of her father.
END OF
PAGE
3
FUNDAMENTALS EXAM
If the governing instrument is silent with respect to reserves for
depreciation or depletion,
which of the following is the best course for the fiduciary? -
ANSWERS-May exercise discretion
A defined contribution retirement plan: - ANSWERS-allows participants
to share in favorable investment
performance
Which of the following is one of the many difficulties in the
administration of defined benefit
plans? - ANSWERS-Requires actuarial services
Under ERISA guidelines, a fiduciary is any person who meets certain
requirements. Which one of
the following is NOT an ERISA requirement to be a fiduciary? -
ANSWERS-Offers investment advice for free
with respect to plan funds or property
END OF
PAGE
1
, CANNON TRUST LATEST
FUNDAMENTALS EXAM
What is the tax penalty for taking required minimum distributions that
are too little or too late? - ANSWERS-50%
The required minimum distribution is calculated by: - ANSWERS-
Dividing the total account balance by the
number of years the account holder is expected to live (according to the
Uniform Table)
The following distributions are all "eligible rollover
distributions" (i. e., subject to UCA 92
withholding), EXCEPT: - ANSWERS-Loans
Which of the following is an example of a defined benefit plan? -
ANSWERS-Pension Plan
A client, age 73, comes to you concerned he has received insufficient
distributions from his IRA.
If, in fact, he has not been taking out enough, how much of a penalty
must he pay? - ANSWERS-50% tax on
the amount the distribution fell short of the required payment.
END OF
PAGE
2
, CANNON TRUST LATEST
FUNDAMENTALS EXAM
Which of the following would result in a 20 percent withholding from a
qualified retirement
distribution? - ANSWERS-A participant receives a rollover distribution
from his qualified plan and deposits
them in an IRA
Peter turned 70 on March 1 of this year. He died the next day. The
beneficiary of his traditional
IRA is his 67 year old brother, Jack. If Jack is to receive the funds in
Peter's IRA, what is the latest
date he can delay distribution? - ANSWERS-December 31 of the year
following the 10th anniversary of
Peters death.
Dan died at the age of 67, with $250,000 in his 401 (k) plan. His
daughter, Carey, is the
beneficiary. If Carey makes no alternative election, these funds must be -
ANSWERS-Distributed within ten
years following the death of her father.
END OF
PAGE
3
