Question 23 (1 point) 31) Kelly joined her employer's defined contribution pension plan this past month when she was first eligible. With regard to the employer's contributions into the pension plan on Kelly's behalf, which of the following statements are true? 1. The employer's contributions will be considered a taxable benefit to Kelly 2. The employer's contributions will not be considered a taxable benefit to Kelly 3. The employer's contributions are a tax-deductible expense to the business 4. The employer's contributions are not a tax-deductible expense to the business 3 and 4 1 and 4 2 and 3 1 and 2 Question 24 (1 point) An impaired annuity is designed to: A) provide the annuitant with a higher amount of income than a regular annuity B) provide the annuitant with a lower amount of income than a regular annuity C) recognition of lifestyle ailments such as heavy smoking or drinking D) recognize the annuitant's lengthened life expectancy tid 11 Question 14 (1 point) With regard to a RRIF, which of the following statements are true? 1. An annuitant can accumulate additional capital by making new regular, tax-deductible contributions. 2. An annuitant can accumulate additional capital through investment earnings. 3. In a low-return environment, withdrawals from a RRIF could erode the capital base of a RRIE. 4. RRIFs typically provide the annuitant with a guaranteed level of income throughout his lifetime. 1 and 2 3 and 4 1 and 4 2 and 3 Question 26 (1 point) Marcel has an income that varies drastically from year to year. He likes the idea of changing his premium when necessary to adjust for his cash flow needs. He is looking to purchase insurance on his life. Which of the following would be the best option for Marcel: A) Whole Life B) Universal Life C) Term D) Term 100 Question 10 (1 point) Using the prescribed method of taxation for an annuity, rather than regular taxation, allows the annuitant to: A) decrease total taxes in early years which is offset by higher taxes in later years B) elect a tax schedule designed by the provider of the annuity C) increase total taxes in early years that is offset by lower taxes in later years D) pay taxes based on a step-rate that is adjusted at each amortization point Question 9 (1 point) Mike is a widower in his early 50's. He has only one child, a daughter who is happily married with three children. 25 years ago he purchased a cottage for $25,000. The fair market value is $200,000. He has decided to bequeath the cottage to his daughter through his will; however, he wants to purchase an insurance policy on his life to provide the funds to pay the capital gains tax upon his death. He wants a simple policy that he can readily understand. He also does not want to pay any more than necessary for insurance. Which of the following four options would be the best choice for Mike? A) Term Insurance B) Term 100 C) Whole Life D) Universal Life
