FiletMinyonhasdecidedshewantstoinvestinamutualfundthathasstockswithcattle.Sheplanstoinvest$100,000overthenextyear.Todayshemeetsyouwithonly$10,000.Thecurrentloadonherpurchaseis5.5%.Howcanyouhelphe

A.Youcan'thelpherbutyoucouldgethertoutilizeagroupdiscountfromher definedbenefitplanandshewillqualifyforadiscount

B.Shewillqualifyforadiscountbecause$10,000isenoughtogetheradiscoun

C.Shecouldcombinehermoneywiththatofyourfirmandqualifyforadiscount

D.Shecouldsignaletterofintentandpayaloadof3.5%

E.Shecouldsignaletterofintentandpayaloadof5%($100,000$10,000)

WhichofthefollowingistruewithrespecttoanIRA?

A.EveryIRAmusthaveatrusteeorcustodian

B.Theindividual'sinterestmustbeforfeitable

C.Investmentsmaynotbemadeinhighlyspeculativeinvestments

D.Distributionmustbeginwhenannuitantisage701/2ortheIRSwillimposea penaltytax

E.A, C and D

550daysagoWilliamTellpurchasedsomeApplestockfor$4500.Todayhesoldthestockfor$7500.Hecurrentlyearns$150,000year.(33%taxbracket)Whattaxeswillhehavetopayifany?Whatwashisgainifany?

A.33%taxeson$7500$4500=$990witha67%gain

B.20%taxeson$7500=$1500,withnogainbecausehesoldthesamestock

C.15%taxeson$7500=$1,125and33%gain

D.$450intaxesand67%gain

Whenanindividualreachesage701/2butdoesnotwithdrawthe"minimumwithdrawal"amount

A.thereisa50%excisetaxontheshortfall

B.B. thereisa50%taxontheentireaccount

thereisa50%taxontheentireaccount

C.thereisa50%taxonthetaxableportion

D.thereisa50%taxonthenontaxableportion

E.noneoftheabovewillapply

Whichofthefollowingisamajoradvantageofaqualifiedplan?

a.Animmediatetaxdeductionfortheemployee

b.Animmediatetaxdeductionfortheemployer

c.Taxdeferredbuildupoffunds

A and C

A, B and C