Which of the following statements regarding the anticipated effective income tax rate a planner should use for required retirement plan distributions is(are) NOT correct? 1 The projected rate should be based only on a blend of current federal and state marginal income tax rates. 2 The projected rate should be based only on a blend of current federal marginal income tax rates, gift tax rates, and estate tax rates. 3 Accurately predicting future income taxes is not feasible. 4 A planner should only use aftertax rate of return assumptions on retirement plan distributions.

Question 8 options:

1)

2 and 4

2)

1 and 3

3)

4 only

4)

2, 3 and 4

All of the following are characteristics of traditional defined benefit pension plans EXCEPT

Question 9 options:

1)	employees assume the risk of poor investment results

2)	the plans are complex to design and operate

3)	the employer is required to make annual contributions

4)	a limited benefit is guaranteed by the Pension Benefit Guaranty Corporation (PBGC)