Test Questions CRPC Module 4 with
Complete Solutions8
Whole life policies are designed to provide what - ANSWERS-Level premiums, a guaranteed
death benefit no matter when the insured dies and guaranteed cash flow
Facts about a Roth IRA - ANSWERS-With drawls from a Roth IRA for a first time home purchase,
up to $10,000, or not penalized if the five-year holding period has been met. Total IRA
contributions, both Ross and traditional, or aggregated and cannot exceed $6000. Distributions
of principal from a Roth IRA are not subject to the 10% penalty. Finally a Roth Aire is not subject
to RMD rules, although Roth 401(k) are
Flexibility is the key word that describes what type of life insurance - ANSWERS-Universal life.
What is the keyword for term life insurance - ANSWERS-Low-cost, relative to other options
What is the keyword for whole life insurance - ANSWERS-Guaranteed
What is the keyword for variable life insurance - ANSWERS-Variable
When not enough money has been saved to properly provide for retirement income, retirees
may - ANSWERS-Need to consider working during retirement, reducing their standard of living,
or selling their home and moving in with their children
Earned income as defined by the internal revenue code includes - ANSWERS-Alimony, salary,
bonuses, fees, commissions
, An individual is not considered an active participant in an employer sponsored defined
contribution plan if they only receive what - ANSWERS-Interest
How long is a Roth IRA owner required to hold the account before taking a tax free distribution -
ANSWERS-A minimum of five years starting on January 1 of The year the first contribution is
made and the owner must be at least 59 1/2
How much may a Roth 401K participant age 50 and older contribute in 2019 - ANSWERS-An
additional $6000 as a catch-up provision, this is in addition to the regular deferral limit of
$19,000
Who are Roth IRAs most suitable for - ANSWERS-Younger individuals in entry level jobs,
individuals saving for a new home, individuals looking for tax diversification in their portfolios
Fixed annuities - ANSWERS-The premiums in a fixed annuity or invested in the companies
general account
Variable annuities - ANSWERS-Premium contributions purchase units of separate accounts, their
objective is to outpace inflation, a rider can be added so that the value at death is guaranteed to
be at least equal to the amount of the premium investment
Single life annuity - ANSWERS-Provides the largest lifetime monthly income
How are lump sum distribution's from a nonqualified annuity taxed - ANSWERS-Fully taxable
until all earnings have been distributed, this is referred to as last in first out
Surrender charges associated with an annuity - ANSWERS-A typical surrender charge period is 4
to 9 years
Surrender charges are away for insurance companies to recoup expenses associated with the
establishment of the contract and the contract guarantees
Complete Solutions8
Whole life policies are designed to provide what - ANSWERS-Level premiums, a guaranteed
death benefit no matter when the insured dies and guaranteed cash flow
Facts about a Roth IRA - ANSWERS-With drawls from a Roth IRA for a first time home purchase,
up to $10,000, or not penalized if the five-year holding period has been met. Total IRA
contributions, both Ross and traditional, or aggregated and cannot exceed $6000. Distributions
of principal from a Roth IRA are not subject to the 10% penalty. Finally a Roth Aire is not subject
to RMD rules, although Roth 401(k) are
Flexibility is the key word that describes what type of life insurance - ANSWERS-Universal life.
What is the keyword for term life insurance - ANSWERS-Low-cost, relative to other options
What is the keyword for whole life insurance - ANSWERS-Guaranteed
What is the keyword for variable life insurance - ANSWERS-Variable
When not enough money has been saved to properly provide for retirement income, retirees
may - ANSWERS-Need to consider working during retirement, reducing their standard of living,
or selling their home and moving in with their children
Earned income as defined by the internal revenue code includes - ANSWERS-Alimony, salary,
bonuses, fees, commissions
, An individual is not considered an active participant in an employer sponsored defined
contribution plan if they only receive what - ANSWERS-Interest
How long is a Roth IRA owner required to hold the account before taking a tax free distribution -
ANSWERS-A minimum of five years starting on January 1 of The year the first contribution is
made and the owner must be at least 59 1/2
How much may a Roth 401K participant age 50 and older contribute in 2019 - ANSWERS-An
additional $6000 as a catch-up provision, this is in addition to the regular deferral limit of
$19,000
Who are Roth IRAs most suitable for - ANSWERS-Younger individuals in entry level jobs,
individuals saving for a new home, individuals looking for tax diversification in their portfolios
Fixed annuities - ANSWERS-The premiums in a fixed annuity or invested in the companies
general account
Variable annuities - ANSWERS-Premium contributions purchase units of separate accounts, their
objective is to outpace inflation, a rider can be added so that the value at death is guaranteed to
be at least equal to the amount of the premium investment
Single life annuity - ANSWERS-Provides the largest lifetime monthly income
How are lump sum distribution's from a nonqualified annuity taxed - ANSWERS-Fully taxable
until all earnings have been distributed, this is referred to as last in first out
Surrender charges associated with an annuity - ANSWERS-A typical surrender charge period is 4
to 9 years
Surrender charges are away for insurance companies to recoup expenses associated with the
establishment of the contract and the contract guarantees
