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1.. n investor deposits $50,000 into a variable annuity. When the client is ready to withdraw, the value of the annuity is $80,000. If the

1..

n investor deposits $50,000 into a variable annuity. When the client is ready to withdraw, the value of the annuity is $80,000. If the investor withdraws $55,000 from the account, which of the following is true?

All $55,000 withdrawn is treated as return of capital

$30,000 is taxable as ordinary income while $25,000 is treated as return of capital

All $55,000 withdrawn is taxed as ordinary income

$5,000 is taxable as ordinary income while $50,000 is treated as return of capital

2.

hat is the maximum lump-sum contribution allowed for a 529 plan?

$30,000

$75,000

$15,000

$60,000

  1. All of the following are true about Coverdell ESAs except:

    Withdrawals are tax free only for college expenses

    There are income restrictions

    The maximum annual contribution is $2,000 per child per year

    There are age restrictions

  2. Which of following statements are true about QTPs (Qualified Tuition Plans)? I. College savings plans guarantee future payments at a college of the owners choice II. College savings plans allow owner to choose the investments III. Prepaid tuition plans guarantee futures payments at a college of the owners choice IV. Prepaid tuition plans allow the owner to choose the investments
  3. person contributes money to a Roth IRA. After realizing that her AGI will be too high to allow Roth IRA contributions, she wants to switch the contribution to the Traditional IRA to avoid paying taxes on the deposit. When is the latest that she can switch the deposit to the traditional IRA without taxes or penalties?

    December 31st of the following year

    April 15th of the following year

    When she files her tax forms

    December 31st of the current year

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