Geb 3006 final exam |117 Questions with Solutions
Employer benefits can be worth up to ___ of your base salary. - -50%
-Generally the two main employer benefits with the highest value are: - -Retirement and
health plans
-Assume you have a 401-K plan and that your employer requires you to stay five years to
"vest" in the plan. If you leave the company in three years then, - -You will lose the amount
your employer contributed to the plan plus the earnings, but you will retain your
contributions and the earnings thereon
-Which of the following health plans offers the most choice in doctors and has the highest
cost? - -PPO
-Which of the following health plans generally requires that you first see your primary care
physician and remain within a restricted network of doctors? - -HMO
-Which of the following is TRUE? - -Flexible spending and health savings accounts are
shown as reductions to your W-2 income, and thus save federal taxes
-After enrolling in your primary health insurance plan, which of the following is the next
MOST important insurance that all employees should sign up for during open enrollment? -
-Disability insurance
-Employees without a pension plan should try to save at least _____ of their salary
(including employer 401-K plan matches) throughout their working careers. - -10-15%
-Fidelity Investments recommends that individuals without pensions have about ___ times
their salary at age 67 in order to have a sufficient amount of money to retire. - -10
-Fidelity Investments recommends that individuals without pensions have about ___ times
their salary at age 30 in order to have a sufficient amount of money to retire. - -1
-Which of the following statements is TRUE? - -(all of these) All W-2 earnings are subject
to the 1.45% Medicare tax.
Employee contributions to social security are matched by their employer
If you are self employed, you will need to pay both the employee and employer share of
your social security and medicare tax
The Social Security or FICA tax is 6.2% and the maximum amount of earnings subject to
Social Security tax is $128,400 in 2018
-At what age will you become eligible for Medicare? - -65
, -At what age are you eligible for early Social Security? - -62, and the amount received is a
discounted benefit compared to the full retirement benefit
-Which of the following statements is FALSE? - -If you accepted a chance to "resign"
instead of being fired, then you are still eligible for state unemployment benefits.
-It is always a good idea to purchase disability insurance if offered by your employer. - -
true
-If you resign from a job, you will not be entitled to unemployment compensation. - -true
-Which health plan has a low cost but high deductible? - -HDHP
-Unused savings in a Health savings accounts (HSA) can be carried forward to future years.
Unused savings can be invested and HSAs can only be used for PPO plans. - -false
-The rules for flexible spending accounts generally require that employees use the money
within the current year or lose unused savings. - -true
-Which of the following statements is TRUE? - -(all of them) 401-Ks provide tax deferred
savings.
Early withdrawals from a 401-K are subject to a 10% penalty (with some exceptions).
The employer match in a 401-K plan and the related earnings must be "vested" in order to
be the legal property of the employee.
-When you leave your job, you should always rollover your 401-K assets to a self directed
rollover IRA. - -true
-Fidelity Investments studied customers with > $1 million in their 401-K account.
Which of the following was NOT an attribute of individuals who had saved over $1 million:
- -They considered mutual funds that invested primarily in bonds.
-Which of the following retirement plans allows employees to save with after tax dollars
which grow tax free? - -Roth 401-K Plans
-Between 1990 and 2010, the average US savings rate was around: - -5%
-What two factors count for 65% of your FICO score? - -Payment history and outstanding
debts
-Which company has developed the MOST commonly used credit score to evaluate an
individual's credit? - -Fair Isaac Corporation
-Individuals are allowed to receive a free copy of their credit report once every two years
from one of the three credit monitoring companies. - -false
Employer benefits can be worth up to ___ of your base salary. - -50%
-Generally the two main employer benefits with the highest value are: - -Retirement and
health plans
-Assume you have a 401-K plan and that your employer requires you to stay five years to
"vest" in the plan. If you leave the company in three years then, - -You will lose the amount
your employer contributed to the plan plus the earnings, but you will retain your
contributions and the earnings thereon
-Which of the following health plans offers the most choice in doctors and has the highest
cost? - -PPO
-Which of the following health plans generally requires that you first see your primary care
physician and remain within a restricted network of doctors? - -HMO
-Which of the following is TRUE? - -Flexible spending and health savings accounts are
shown as reductions to your W-2 income, and thus save federal taxes
-After enrolling in your primary health insurance plan, which of the following is the next
MOST important insurance that all employees should sign up for during open enrollment? -
-Disability insurance
-Employees without a pension plan should try to save at least _____ of their salary
(including employer 401-K plan matches) throughout their working careers. - -10-15%
-Fidelity Investments recommends that individuals without pensions have about ___ times
their salary at age 67 in order to have a sufficient amount of money to retire. - -10
-Fidelity Investments recommends that individuals without pensions have about ___ times
their salary at age 30 in order to have a sufficient amount of money to retire. - -1
-Which of the following statements is TRUE? - -(all of these) All W-2 earnings are subject
to the 1.45% Medicare tax.
Employee contributions to social security are matched by their employer
If you are self employed, you will need to pay both the employee and employer share of
your social security and medicare tax
The Social Security or FICA tax is 6.2% and the maximum amount of earnings subject to
Social Security tax is $128,400 in 2018
-At what age will you become eligible for Medicare? - -65
, -At what age are you eligible for early Social Security? - -62, and the amount received is a
discounted benefit compared to the full retirement benefit
-Which of the following statements is FALSE? - -If you accepted a chance to "resign"
instead of being fired, then you are still eligible for state unemployment benefits.
-It is always a good idea to purchase disability insurance if offered by your employer. - -
true
-If you resign from a job, you will not be entitled to unemployment compensation. - -true
-Which health plan has a low cost but high deductible? - -HDHP
-Unused savings in a Health savings accounts (HSA) can be carried forward to future years.
Unused savings can be invested and HSAs can only be used for PPO plans. - -false
-The rules for flexible spending accounts generally require that employees use the money
within the current year or lose unused savings. - -true
-Which of the following statements is TRUE? - -(all of them) 401-Ks provide tax deferred
savings.
Early withdrawals from a 401-K are subject to a 10% penalty (with some exceptions).
The employer match in a 401-K plan and the related earnings must be "vested" in order to
be the legal property of the employee.
-When you leave your job, you should always rollover your 401-K assets to a self directed
rollover IRA. - -true
-Fidelity Investments studied customers with > $1 million in their 401-K account.
Which of the following was NOT an attribute of individuals who had saved over $1 million:
- -They considered mutual funds that invested primarily in bonds.
-Which of the following retirement plans allows employees to save with after tax dollars
which grow tax free? - -Roth 401-K Plans
-Between 1990 and 2010, the average US savings rate was around: - -5%
-What two factors count for 65% of your FICO score? - -Payment history and outstanding
debts
-Which company has developed the MOST commonly used credit score to evaluate an
individual's credit? - -Fair Isaac Corporation
-Individuals are allowed to receive a free copy of their credit report once every two years
from one of the three credit monitoring companies. - -false
