Question 33 (1 point)

Which of the following is(are) true regarding the interest rate credit used in cash balance pension plans? 1 The interest rate credited to a participant's hypothetical account is determined upon the establishment of the plan and cannot fluctuate. 2 If the underlying investments of the plan outperform the interest rate credit guarantee in a given year, the participant will receive a greater credit for that given year. 3 If the underlying investments of the plan outperform the interest rate credit guarantee in a given year, the employer may reduce plan contributions for that given year. 4 Because of the hypothetical individual accounts, plan participants may choose among various fixed interest rate investments for their accounts.

Question 33 options:

1)

3 only

2)	1, 2 and 4

3)

1 and 3

4)

4 only

Question 34 (1 point)

Which of the following statements regarding Social Security benefits is(are) CORRECT? I Retirees receiving Social Security benefits at or after full retirement age (FRA) do not have to comply with a retirement earnings test. II Workers retiring before full retirement age may have benefits withheld if their earned income exceeds the current year earnings limit.

Question 34 options:

1)	Both I and II

2)

I only

3)

II only

4)	Neither I nor II

Question 35 (1 point)

Jonathan, age 45, runs a consulting business and is classified as a selfemployed individual for tax purposes. He reports his earnings on Schedule C of Form 1040. His net earnings from selfemployment are typically $150,000 per year. Jonathan wants to establish a retirement plan for himself. Which of the following actions is appropriate to shelter the maximum amount of Jonathan's current taxable income?

Question 35 options:

1)	He may establish a profitsharing (Keogh) qualified plan with deductible contributions of 20% of his Schedule C income, as adjusted.

2)	He should establish a Roth IRA with annual contribution amounts of $5,500.

3)	He should establish a SIMPLE IRA.

4)	He should establish a traditional IRA with annual contribution amounts of $5,500.

Question 36 (1 point)

A qualifying lumpsum distribution from a qualified plan may be eligible for favorable income tax treatment. Which of the following events may allow qualifying lumpsum distribution tax treatment for an employee/participant? 1 The employee's attaining age 59 2 The participant's purchase of a primary residence 3 Financial hardship 4 Employee separation from service

Question 36 options:

1)

1 and 4

2)	1, 2, 3 and 4

3)

1 only

4)

3 only

Question 37 (1 point)

Which of the following statements regarding fully insured Section 412(e)(3) plans is(are) NOT correct?

Question 37 options:

1)	Section 412(e)(3) plans must meet minimum funding standards each plan year.

2)	This type of plan is not required to be certified by an enrolled or licensed actuary.

3)	A Section 412(e)(3) plan is a type of defined benefit pension plan.

4)	A fully insured plan is inappropriate for an employer who cannot commit to regular premium payments.

Question 38 (1 point)

Mark died this year fully insured under Social Security. Which of his unmarried, dependent children is eligible for a survivor's benefit from Social Security based upon Mark's fully insured status?

Question 38 options:

1)	Beverly, age 22, who has been disabled for 4 years

2)	Glenn, a 20yearold child still in high school

3)	A 19yearold child in junior college

4)	Mark, Jr., age 20, and Glenn's twin, who lives away from home

Question 39 (1 point)

Which of the following statements regarding a nonspouse beneficiary of an IRA is CORRECT?

Question 39 options:

1)	The nonspouse beneficiary may elect to distribute the IRA over the remaining life expectancy of the beneficiary commencing the year following the year of death, reduced by 1 for each subsequent year.

2)	The nonspouse beneficiary may rollover the IRA into his own IRA and defer distribution until attaining age 70.

3)	The nonspouse beneficiary must follow the 5year payout rule.

4)	The nonspouse beneficiary must take a lumpsum distribution in the year following the death of the participant owner.

Question 40 (1 point)

The employer bears the investment risk for which of the following retirement plans? 1 Cash balance pension plan 2 SIMPLE 401(k) plan 3 Ageweighted profitsharing plan 4 Money purchase pension plan

Question 40 options:

1)

1 only

2)

1 and 4

3)

3 and 4

4)	1, 2 and 3