Exam: 412759RR Planning for Retirement

Exam: 412759RR Planning for Retirement

1. Matrix Insurance holds the assets of Stream Corporation’s qualified retirement plan in a separate account. What is the most likely reason that Matrix would do so?

A. Matrix Insurance and Stream Corporation are partners.

B. Matrix Insurance is a funding agency.

C. Stream Corporation is a whole-life contract provider.

D. Stream Corporation doesn’t have a stable benefit disbursement history.

2. If an individual wishes to appeal a tax assessment made by the IRS, what advantage does this individual have in taking the case to the U.S. Tax Court?

A. The U.S. Tax Court is the only court that can overrule regulations of the IRS.

B. The U.S. Tax Court is the final court of appeal for tax cases.

C. The U.S. Tax Court has more authority than the Federal District Court or the U.S. Claims Court.

D. The individual doesn’t have to pay the disputed tax before taking the case to court.

3. A major cause for the establishment of the Social Security system was the

A. Vietnam War.

B. Revenue Act of 1926.

C. Great Depression.

D. Revenue Act of 1921.

4. Which one of the following statements about contributory pension plans is most accurate?

A. Employees appreciate their benefit plans more when they contribute to benefit funding.

B. The least favorable contributory plan involves salary reduction.

C. Contributory plans give employees some degree of choice in allocating their compensation between cash and deferred benefits.

D. The contributory approach lowers the cost of pension benefit plans.

5. For all practical purposes, the primary source of significant regulations regarding employee benefits is the

A. Internal Revenue Service.

B. Pension Benefit Guaranty Corporation.

C. Constitution of the United States.

D. Department of Labor.