ARIZONA LIFE ACCIDENT AND HEALTH OR SICK d d d d d d
NESS INSURANCE PRODUCER EXAM 1333 ACTUA
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L EXAM PAPER 2026 QUESTIONS WITH ANSWERS
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GRADED A d
◉ Qualified Plan Requirements. Answer: 1) Be in writing 2)provided
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for benefit of employee 3) must satisfy age and serive standards 4) ca
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nnot be discriminatory 5) contributions cannot exceed yearly
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maximus 6) must provide survivorship benefits 7) must meet minium
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um vesting standards 8) cannot be top heavy
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◉ Advantages of Qualified plans. Answer: - d d d d d
employer and employee contributions are tax deductivble and accu
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mulate tax deferred d d
- Withdrawls before 59.5 is a 10% penalty d d d d d d
- must begin miniumum distributions by age 70.5
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◉ Qualified Plan distributions. Answer: - taxable upon withdrawl
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- 10% penalty upon withdrawl before 59.6
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- can take out w/o penalty if death, divorce, qualified financial
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hardship, plan loan or qualified rollover, 1st time home buyer,
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disability of owner d d
- if you take out the money early, its a 20% penalty
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,- must rollover w/in 60 days or its considered a premature
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distribution
◉ Penalty for Withdrawl of Qualified Plan. Answer: -
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a 10% penalry plus applicable state and federal taxes
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◉ IRA IIndividual Retirement Account). Answer: -
d d d d d
all individuals who have earned income
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- possible tax deductions d d
- tax deferral of gains
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- Can contribute up to 5,000
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- can add 1,000 "catch up" if over 50
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◉ Education IRA. Answer: - method to provide funding
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- Can be transferred to another IRA at 30
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◉ Section 529 Plans. Answer: - state provided
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- can be funded by after tax dollars
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- can pay prepaid tuition
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- All earnings exempt from federal taxes
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- If withdrawn for unqualified withdrawl, 10% penalty
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,◉ Roth IRA. Answer: -
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Allows owner to make non tax deductible contributions
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- to get withdrawls tax free, the account must be in existence for 5 y
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ears
- can add money tax free up to 5k
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- distributions are tax free d d d
- account is only allowed for people who's income does not exceed a c
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ertain amount
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◉ SEP IRA (simplified Employee Pension Plan). Answer: -
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employer sponsored IRA for small employers
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- contrinutions deductible to employer d d d
- Employee must have worked for 3 of last 5 years
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- contributions by employer cant exceed 49k or 25% of income,
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whichever is lesser d d
- contributions for employees cant exceed 16,500 d d d d d
◉ Keogh Plan. Answer: - self employed and employees
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- replaced by SEPs d d
◉ 401k Plan. Answer: -
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allows employees to save for retirement tax free
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- money is taken out pre-
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tax, and can be matched (and deductible to employwer)
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, - Withdrawl penalty of 10% prior to age 59.5 d d d d d d d
- Miniumum distributions by age 70.5 d d d d
- 2011 max was 16,500
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◉ 403(b)/tax-sheltered Annuity. Answer: - d d d
availbale for employees of nonprofits, schools universities, churche
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s & hospitals
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- just like 401k plans
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◉ 457 Deffered Compensation. Answer: -
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available for employess of state and local govt
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-the plan is owned by employer
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◉ Profit Plan. Answer: - part of defined contribitution plan
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- annual profits shared among employees
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- no guarantee of payment
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◉ Pension Plan. Answer: Retirement Plan that calculates benefit
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based upon years of service and income averages
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◉ ESOP. Answer: - employee stock ownership plan
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- defined contribution plan that provides employer stock to
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employees based on income and profits of company
d d d d d d d
NESS INSURANCE PRODUCER EXAM 1333 ACTUA
d d d d d
L EXAM PAPER 2026 QUESTIONS WITH ANSWERS
d d d d d d d
GRADED A d
◉ Qualified Plan Requirements. Answer: 1) Be in writing 2)provided
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for benefit of employee 3) must satisfy age and serive standards 4) ca
d d d d d d d d d d d d
nnot be discriminatory 5) contributions cannot exceed yearly
d d d d d d d
maximus 6) must provide survivorship benefits 7) must meet minium
d d d d d d d d d
um vesting standards 8) cannot be top heavy
d d d d d d d
◉ Advantages of Qualified plans. Answer: - d d d d d
employer and employee contributions are tax deductivble and accu
d d d d d d d d d
mulate tax deferred d d
- Withdrawls before 59.5 is a 10% penalty d d d d d d
- must begin miniumum distributions by age 70.5
d d d d d d
◉ Qualified Plan distributions. Answer: - taxable upon withdrawl
d d d d d d d
- 10% penalty upon withdrawl before 59.6
d d d d d
- can take out w/o penalty if death, divorce, qualified financial
d d d d d d d d d d
hardship, plan loan or qualified rollover, 1st time home buyer,
d d d d d d d d d d
disability of owner d d
- if you take out the money early, its a 20% penalty
d d d d d d d d d d
,- must rollover w/in 60 days or its considered a premature
d d d d d d d d d d
distribution
◉ Penalty for Withdrawl of Qualified Plan. Answer: -
d d d d d d d
a 10% penalry plus applicable state and federal taxes
d d d d d d d d d
◉ IRA IIndividual Retirement Account). Answer: -
d d d d d
all individuals who have earned income
d d d d d d
- possible tax deductions d d
- tax deferral of gains
d d d
- Can contribute up to 5,000
d d d d
- can add 1,000 "catch up" if over 50
d d d d d d d
◉ Education IRA. Answer: - method to provide funding
d d d d d d d
- Can be transferred to another IRA at 30
d d d d d d d
◉ Section 529 Plans. Answer: - state provided
d d d d d d
- can be funded by after tax dollars
d d d d d d
- can pay prepaid tuition
d d d
- All earnings exempt from federal taxes
d d d d d
- If withdrawn for unqualified withdrawl, 10% penalty
d d d d d d
,◉ Roth IRA. Answer: -
d d d
Allows owner to make non tax deductible contributions
d d d d d d d d
- to get withdrawls tax free, the account must be in existence for 5 y
d d d d d d d d d d d d d
ears
- can add money tax free up to 5k
d d d d d d d
- distributions are tax free d d d
- account is only allowed for people who's income does not exceed a c
d d d d d d d d d d d d
ertain amount
d
◉ SEP IRA (simplified Employee Pension Plan). Answer: -
d d d d d d d
employer sponsored IRA for small employers
d d d d d d
- contrinutions deductible to employer d d d
- Employee must have worked for 3 of last 5 years
d d d d d d d d d
- contributions by employer cant exceed 49k or 25% of income,
d d d d d d d d d d
whichever is lesser d d
- contributions for employees cant exceed 16,500 d d d d d
◉ Keogh Plan. Answer: - self employed and employees
d d d d d d d
- replaced by SEPs d d
◉ 401k Plan. Answer: -
d d d
allows employees to save for retirement tax free
d d d d d d d d
- money is taken out pre-
d d d d
tax, and can be matched (and deductible to employwer)
d d d d d d d d
, - Withdrawl penalty of 10% prior to age 59.5 d d d d d d d
- Miniumum distributions by age 70.5 d d d d
- 2011 max was 16,500
d d d d
◉ 403(b)/tax-sheltered Annuity. Answer: - d d d
availbale for employees of nonprofits, schools universities, churche
d d d d d d d d
s & hospitals
d d
- just like 401k plans
d d d
◉ 457 Deffered Compensation. Answer: -
d d d d
available for employess of state and local govt
d d d d d d d d
-the plan is owned by employer
d d d d d
◉ Profit Plan. Answer: - part of defined contribitution plan
d d d d d d d d
- annual profits shared among employees
d d d d
- no guarantee of payment
d d d
◉ Pension Plan. Answer: Retirement Plan that calculates benefit
d d d d d d d d
based upon years of service and income averages
d d d d d d d
◉ ESOP. Answer: - employee stock ownership plan
d d d d d d
- defined contribution plan that provides employer stock to
d d d d d d d d
employees based on income and profits of company
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