Series 65 – Unit 18 Exam – Investment Advisor & Securities Regulation
– study material
One of your customers passed away recently. The customer had an IRA with you and had his
sister listed as the beneficiary. Other assets included the home and furnishings and a brokerage
account at another firm. The titling on that brokerage account was the customer and his son,
JTWROS. The customer's will specified that 100% of his assets should pass to his daughter.
Based on this information, the estate settlement will have
A. the daughter receiving everything as stated in the will.
B. the daughter getting the home and furnishings and the IRA, with the son receiving the
brokerage account.
C. the daughter getting the home and furnishings, the son receiving the brokerage account, and
the sister getting the IRA.
D. the daughter getting the home and furnishings and the brokerage account, with the sister
receiving the IRA. - correct answer ✔✔The daughter getting the home and furnishings, the son
receiving the brokerage account, and the sister getting the IRA
When a corporation establishes a qualified money purchase plan,
A. discrimination in favor of lower-compensated employees is encouraged.
B. the employee is obligated to make annual contributions at the rate stated in the plan.
C. the corporation can adjust the contribution rate based on company profits.
D. the corporation is obligated to make annual contributions at the rate stated in the plan. -
correct answer ✔✔The corporation is obligated to make annual contributions at the rate stated
in the plan
Your client, who has not yet attained the age of 59½, wants to take a withdrawal from his
traditional IRA. Since the client is not disabled and does not meet any other qualifying reason
, allowing for an early withdrawal, you explain that the amount taken will be subject to a penalty
of
A. 15%.
B. 6%.
C. 50%.
D. 10%. - correct answer ✔✔10%
Each of the following individuals is eligible to participate in a Keogh plan except
A. a self-employed doctor in private practice.
B. a securities analyst employed by a major research organization who makes $2,000 giving
lectures in his spare time.
C. an executive of a corporation who receives $5,000 in stock options from his company.
D. an engineer employed by a corporation who earns $5,000 making public speeches in her
spare time. - correct answer ✔✔An executive of a corporation who receives $5,000 in stock
options from his company
A 40-year-old teacher in the local public school system would find her retirement needs best
served by contributing to
A. a 401(k).
B. a traditional IRA.
C. a 403(b).
D. a Roth IRA. - correct answer ✔✔A 403(b)
All of these are reasons a corporation might choose to establish a nonqualified plan rather than
a qualified plan except
– study material
One of your customers passed away recently. The customer had an IRA with you and had his
sister listed as the beneficiary. Other assets included the home and furnishings and a brokerage
account at another firm. The titling on that brokerage account was the customer and his son,
JTWROS. The customer's will specified that 100% of his assets should pass to his daughter.
Based on this information, the estate settlement will have
A. the daughter receiving everything as stated in the will.
B. the daughter getting the home and furnishings and the IRA, with the son receiving the
brokerage account.
C. the daughter getting the home and furnishings, the son receiving the brokerage account, and
the sister getting the IRA.
D. the daughter getting the home and furnishings and the brokerage account, with the sister
receiving the IRA. - correct answer ✔✔The daughter getting the home and furnishings, the son
receiving the brokerage account, and the sister getting the IRA
When a corporation establishes a qualified money purchase plan,
A. discrimination in favor of lower-compensated employees is encouraged.
B. the employee is obligated to make annual contributions at the rate stated in the plan.
C. the corporation can adjust the contribution rate based on company profits.
D. the corporation is obligated to make annual contributions at the rate stated in the plan. -
correct answer ✔✔The corporation is obligated to make annual contributions at the rate stated
in the plan
Your client, who has not yet attained the age of 59½, wants to take a withdrawal from his
traditional IRA. Since the client is not disabled and does not meet any other qualifying reason
, allowing for an early withdrawal, you explain that the amount taken will be subject to a penalty
of
A. 15%.
B. 6%.
C. 50%.
D. 10%. - correct answer ✔✔10%
Each of the following individuals is eligible to participate in a Keogh plan except
A. a self-employed doctor in private practice.
B. a securities analyst employed by a major research organization who makes $2,000 giving
lectures in his spare time.
C. an executive of a corporation who receives $5,000 in stock options from his company.
D. an engineer employed by a corporation who earns $5,000 making public speeches in her
spare time. - correct answer ✔✔An executive of a corporation who receives $5,000 in stock
options from his company
A 40-year-old teacher in the local public school system would find her retirement needs best
served by contributing to
A. a 401(k).
B. a traditional IRA.
C. a 403(b).
D. a Roth IRA. - correct answer ✔✔A 403(b)
All of these are reasons a corporation might choose to establish a nonqualified plan rather than
a qualified plan except
