IRM 4155 Final Exam Study Guide
Questions and Answers17
How frequently can individuals transfer money from an IRA into a health savings account?
a. Never
b. Once per month
c. Once per year
d. Once in a lifetime - ANSWERS-d. Once in a lifetime
Payments from an educational assistance plan may cover:
a. Tuition
b. Fees
c. Books
d. all of the above
e. only b and c - ANSWERS-d. all of the above
Individuals can deduct job-related educational expenses if it is
a. Required for minimum requirements of current job
b. Qualifies the individual for a new trade or business
c. Required by the employer to keep the individuals job
,d. all of the above
e. only b and c - ANSWERS-c. Required by the employer to keep the individuals job
All of the following are considered de minimis fringe benefits, except
a. Company Car
b. Coffee
c. Personal use of company cell phone
d. Occasional use of company printer - ANSWERS-a. Company Car
Benefits from health insurance are included in employee taxable income. - ANSWERS-FALSE
HMOs try to control costs by emphasizing preventative care. - ANSWERS-TRUE
In a PPO plan, providers are contracted to provide service to plan members at a negotiated
and/or discounted rate. - ANSWERS-TRUE
According to tax law, a Health Savings Account can only be established by an employer on
behalf of an employee. - ANSWERS-FALSE
High-deductible health insurance is recommended, but not required, with a health savings
account. - ANSWERS-FALSE
Long-term disability payments usually replace 100% of salary. - ANSWERS-FALSE
, Magnus Enterprises is located fifteen miles out of town. Magnus provides a hot and cold lunch
on-site for employees without cost. Employees must include the value of meals eaten as part of
their taxable income. - ANSWERS-FALSE
With an HMO plan, employees generally have higher out of pocket expenses, but greater
flexibility in the choice of doctors or hospitals than other group health plans. - ANSWERS-FALSE
An advantage of an educational assistance plan is that employers can benefit from
improvement in employee skills. - ANSWERS-TRUE
A plan may provide educational assistance benefits to former employees, including retired,
disabled, or laid-off employees. - ANSWERS-TRUE
Fiduciaries would breach the duty of loyalty by acting in the interests of third parties. -
ANSWERS-TRUE.
When determining if a fiduciary followed the "prudent man" rule, courts must consider the
results of an investment in the prior year. - ANSWERS-FALSE
A common example of coinsurance requires that employees are responsible for 20% of covered
medical expenses. - ANSWERS-TRUE
Flexible Spending Accounts let you carry over all unused funds from year to year. - ANSWERS-
FALSE
Once you reach age 65, you can also use your HSA to pay for COBRA and certain Medicare
premiums as well as long-term care insurance. - ANSWERS-TRUE
Questions and Answers17
How frequently can individuals transfer money from an IRA into a health savings account?
a. Never
b. Once per month
c. Once per year
d. Once in a lifetime - ANSWERS-d. Once in a lifetime
Payments from an educational assistance plan may cover:
a. Tuition
b. Fees
c. Books
d. all of the above
e. only b and c - ANSWERS-d. all of the above
Individuals can deduct job-related educational expenses if it is
a. Required for minimum requirements of current job
b. Qualifies the individual for a new trade or business
c. Required by the employer to keep the individuals job
,d. all of the above
e. only b and c - ANSWERS-c. Required by the employer to keep the individuals job
All of the following are considered de minimis fringe benefits, except
a. Company Car
b. Coffee
c. Personal use of company cell phone
d. Occasional use of company printer - ANSWERS-a. Company Car
Benefits from health insurance are included in employee taxable income. - ANSWERS-FALSE
HMOs try to control costs by emphasizing preventative care. - ANSWERS-TRUE
In a PPO plan, providers are contracted to provide service to plan members at a negotiated
and/or discounted rate. - ANSWERS-TRUE
According to tax law, a Health Savings Account can only be established by an employer on
behalf of an employee. - ANSWERS-FALSE
High-deductible health insurance is recommended, but not required, with a health savings
account. - ANSWERS-FALSE
Long-term disability payments usually replace 100% of salary. - ANSWERS-FALSE
, Magnus Enterprises is located fifteen miles out of town. Magnus provides a hot and cold lunch
on-site for employees without cost. Employees must include the value of meals eaten as part of
their taxable income. - ANSWERS-FALSE
With an HMO plan, employees generally have higher out of pocket expenses, but greater
flexibility in the choice of doctors or hospitals than other group health plans. - ANSWERS-FALSE
An advantage of an educational assistance plan is that employers can benefit from
improvement in employee skills. - ANSWERS-TRUE
A plan may provide educational assistance benefits to former employees, including retired,
disabled, or laid-off employees. - ANSWERS-TRUE
Fiduciaries would breach the duty of loyalty by acting in the interests of third parties. -
ANSWERS-TRUE.
When determining if a fiduciary followed the "prudent man" rule, courts must consider the
results of an investment in the prior year. - ANSWERS-FALSE
A common example of coinsurance requires that employees are responsible for 20% of covered
medical expenses. - ANSWERS-TRUE
Flexible Spending Accounts let you carry over all unused funds from year to year. - ANSWERS-
FALSE
Once you reach age 65, you can also use your HSA to pay for COBRA and certain Medicare
premiums as well as long-term care insurance. - ANSWERS-TRUE
