Finance

An immediate life annuity offers all of the following benefits EXCEPT

An immediate life annuity offers all of the following benefits EXCEPT A) Immediate annuity payments are entirely exempt from federal income tax. B) Simplicity for the purchaser as he or she does not have to manage investment funds. C) Security for the purchaser as stable lifetime income that cannot be outlived is provided. D) The […]

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Date: September 19th, 2020

Which of the following statements is (are) true concerning the joint a

Which of the following statements is (are) true concerning the joint and survivor annuity settlement option? I. Under this option, payments begin after the first annuitant dies. II. This settlement option is often selected by married couples. A) I only B) II only C) both I and II D) neither I nor II     […]

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Date: September 19th, 2020

Which of the following statements is (are) true regarding the taxation

Which of the following statements is (are) true regarding the taxation of distributions from individual annuities? I. Individual annuity distributions are never taxable. II. Once the annuitant has recovered the premiums he or she paid for the annuity, the entire annuity distribution is taxable. A) I only B) II only C) both I and II […]

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Date: September 19th, 2020

Which of the following statements about converting a traditional IRA t

Which of the following statements about converting a traditional IRA to a Roth IRA is (are) true? I. Such conversions can be done with no income tax consequences. II. Qualified distributions from a Roth IRA after a conversion are received tax-free. A) I only B) II only C) both I and II D) neither I […]

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Date: September 19th, 2020

Cassie, age 62, paid a life insurer $100,000 in exchange for a life an

Cassie, age 62, paid a life insurer $100,000 in exchange for a life annuity. If Cassie dies before receiving 120 monthly payments from the insurer, the remaining payments will be made to a beneficiary. If Cassie dies after receiving 120 payments, no additional payments are made by the insurer. The annuity option Cassie selected it […]

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Date: September 19th, 2020

Stan paid an insurance company $50,000 for a fixed annuity when he was

Stan paid an insurance company $50,000 for a fixed annuity when he was 50 years old. At age 62, Stan plans to begin to receive payments from the insurer. There are no guarantees on the number of payments he will receive. Based on the description provided, this annuity can be described as a(n) A) deferred […]

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Date: September 19th, 2020

Which of the following statements is (are) true with respect to a join

Which of the following statements is (are) true with respect to a joint-and-survivor annuity? I. Some joint-and-survivor annuities reduce the income payment after the first annuitant dies. II. No payments are made after the first annuitant dies. A) I only B) II only C) both I and II D) neither I nor II     […]

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Date: September 19th, 2020

Bridget started to fund a variable annuity. Three years later, she exp

Bridget started to fund a variable annuity. Three years later, she experienced financial difficulty. She called her agent and cancelled the contract. The insurer returned all but 4 percent of the account balance. The 4 percent kept by the insurer is a(n) A) account administration fee. B) investment management fee. C) front-end load. D) surrender […]

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Date: September 19th, 2020