Investment Vehicle Characteristics
Series 65 Exam 2025 Questions and
Answers
Who safeguards the securities held in a mutual fund's portfolio? - ANSWER✔✔-The
custodian
The Investment Company Act of 1940 requires that investment companies employ the
services of a commercial bank as custodian to hold and safeguard the physical assets
(cash and investment portfolio) of the fund.
What is the tax penalty for the withdrawal of money from an IRA before age 59½? -
ANSWER✔✔-Early withdrawals from an IRA are subject to a tax penalty amounting to
10% of the taxable portion of the distribution.
Excess contributions to an IRA - ANSWER✔✔-Excess contributions are taxed at 6% per
year for each year the excess amounts remain in the IRA.
, IRA withdrawals - ANSWER✔✔-withdrawals can be made after 59.5 without penalty
Traditional IRA RMD - ANSWER✔✔-the RMD for traditional IRAs in 72/73
A client has made both tax-deductible and nondeductible contributions to a traditional
IRA. When distributions are taken from the IRA, - ANSWER✔✔-they are taxed on a pro
rata basis (in proportion)
The portion of the distribution that is nontaxable must be prorated with amounts that
are taxable. For instance, if the individual contributed $2,000 in after-tax amounts and
$8,000 in pre-tax amounts, a distribution of $5,000 would be prorated to include $1,000
after-tax and $4,000 in pre-tax assets.
If an individual makes a withdrawal from her IRA at age 52, she pays no penalty tax if
she - ANSWER✔✔-is disabled
Distributions from which of the following can be rolled over into an IRA? -
ANSWER✔✔-Assets from any qualified corporate plan or from another IRA may be
rolled over into an IRA.
Based on the SECURE Act 2.0, an individual who is 73 on November 15, 2023, has an
IRA's first required minimum distribution date of - ANSWER✔✔-An individual's first
required minimum distribution (RMD) is due by April 1 of the year after turning 73.
Series 65 Exam 2025 Questions and
Answers
Who safeguards the securities held in a mutual fund's portfolio? - ANSWER✔✔-The
custodian
The Investment Company Act of 1940 requires that investment companies employ the
services of a commercial bank as custodian to hold and safeguard the physical assets
(cash and investment portfolio) of the fund.
What is the tax penalty for the withdrawal of money from an IRA before age 59½? -
ANSWER✔✔-Early withdrawals from an IRA are subject to a tax penalty amounting to
10% of the taxable portion of the distribution.
Excess contributions to an IRA - ANSWER✔✔-Excess contributions are taxed at 6% per
year for each year the excess amounts remain in the IRA.
, IRA withdrawals - ANSWER✔✔-withdrawals can be made after 59.5 without penalty
Traditional IRA RMD - ANSWER✔✔-the RMD for traditional IRAs in 72/73
A client has made both tax-deductible and nondeductible contributions to a traditional
IRA. When distributions are taken from the IRA, - ANSWER✔✔-they are taxed on a pro
rata basis (in proportion)
The portion of the distribution that is nontaxable must be prorated with amounts that
are taxable. For instance, if the individual contributed $2,000 in after-tax amounts and
$8,000 in pre-tax amounts, a distribution of $5,000 would be prorated to include $1,000
after-tax and $4,000 in pre-tax assets.
If an individual makes a withdrawal from her IRA at age 52, she pays no penalty tax if
she - ANSWER✔✔-is disabled
Distributions from which of the following can be rolled over into an IRA? -
ANSWER✔✔-Assets from any qualified corporate plan or from another IRA may be
rolled over into an IRA.
Based on the SECURE Act 2.0, an individual who is 73 on November 15, 2023, has an
IRA's first required minimum distribution date of - ANSWER✔✔-An individual's first
required minimum distribution (RMD) is due by April 1 of the year after turning 73.
