CRPC Questions with verified answers
"Bridge jobs" describe periods of partial retirement for older workers. Which one
of the following statements regarding bridge jobs is not true?
They generally represent a move up the socioeconomic ladder, from less-skilled
to more-skilled jobs.
They are less likely to include health insurance coverage.
They generally allow more flexibility than employees' previous full-time jobs.
Ans✓✓✓ They generally represent a move up the socioeconomic ladder, from
less-skilled to more-skilled jobs.
Bridge jobs generally represent a move down the socioeconomic ladder, from
more-skilled to less-skilled jobs or from white-collar to blue-collar jobs. They are
also likely to pay less and are less likely to offer pension plans or health insurance
coverage. On the other hand, due to their temporary or part-time nature, bridge
jobs generally allow more flexibility than full-time career positions.
"Golden parachute" agreements may include all of the following, except
cash.
company stock.
medical and life insurance.
reduced pension benefits. Ans✓✓✓ reduced pension benefits.
Golden parachute agreements may include various combinations of cash,
company stock, medical and life insurance, extra pension benefits, and other
benefits.
,2017 Earnings cap for singles? Ans✓✓✓ $16,920
A Cash Flow statement is used to calculate what? And what does it have on it?
Ans✓✓✓ Inflows and out flows. Not assets and liabilities.
A direct rollover is a transaction in which benefits from a qualified plan are rolled
over directly to
the individual with a check in their name.
a participant's checking or savings account.
another eligible retirement plan.
a conduit IRA. Ans✓✓✓ another eligible retirement plan.
A direct rollover may be accomplished by any reasonable means of direct
payment to an eligible retirement plan, including a wire transfer or mailing of a
check negotiable only by the plan's trustee. Using a conduit IRA is a means of an
indirect rollover.
A distribution cannot be made from a TSA until the employee does which of the
following? Ans✓✓✓ Distributions can be made when an employee separates
from service, attains age 591⁄2, becomes disabled or dies, or qualifies under
hardship rules.
A penalty is imposed for failing to take the required minimum distribution (RMD).
10%
20%
,50%
100% Ans✓✓✓ 50%
The penalty for failing to take the RMD is 50% of the difference between what
should have been taken and what was taken.
A power of attorney is an effective tool for incapacity planning if
it is a general power of attorney.
it is a durable power of attorney.
it is a springing power of attorney.
both b and c. Ans✓✓✓ both b and c.
A durable power of attorney continues after a principal's incapacity, and a
springing power of attorney becomes effective when the principal becomes
incapacitated. The general power of attorney is not an effective tool for incapacity
planning for a simple reason: The agent's authority ceases when the principal
either dies or becomes incapacitated.
A qualified plan must withhold 20% of any distribution that is
part of a trustee-to-trustee transfer.
rolled to a conduit IRA.
part of a lifetime annuity.
going to be rolled over to another qualified plan within 60-days. Ans✓✓✓ going
to be rolled over to another qualified plan within 60-days.
, The 20% withholding rule does not apply to direct rollover distributions or
trustee-to-trustee transfers; the 20% withholding rule does apply to indirect
rollover distributions, such as a 60-day rollover.
A Roth IRA distribution is considered to be "qualified" if... Ans✓✓✓ ...a five-year
holding period is met and the distribution is made after the attainment of age 591⁄2,
death, or disability, or if it is made for the purchase of a first-time home
(maximum $10,000).
A standardized Medigap plan is designed to cover
long-term care expenses when treatment lasts longer than 100 days.
Medicare-approved charges that are not paid by Medicare.
charges that are considered nonmedical and are not covered by Medicare.
Ans✓✓✓ Medicare-approved charges that are not paid by Medicare.
Medigap insurance is designed to supplement Medicare's benefits by filling in
some of what Medicare does not cover, such as deductibles and coinsurance; it
covers only Medicare-approved charges. Standardized Medigap plans pay only for
long-term care while the beneficiary qualifies for benefits from Medicare, and is
limited to paying the coinsurance from the 21st through 100th days.
A trustee-to-trustee transfer is an example of a
direct rollover.
indirect rollover.
conduit rollover.
"Bridge jobs" describe periods of partial retirement for older workers. Which one
of the following statements regarding bridge jobs is not true?
They generally represent a move up the socioeconomic ladder, from less-skilled
to more-skilled jobs.
They are less likely to include health insurance coverage.
They generally allow more flexibility than employees' previous full-time jobs.
Ans✓✓✓ They generally represent a move up the socioeconomic ladder, from
less-skilled to more-skilled jobs.
Bridge jobs generally represent a move down the socioeconomic ladder, from
more-skilled to less-skilled jobs or from white-collar to blue-collar jobs. They are
also likely to pay less and are less likely to offer pension plans or health insurance
coverage. On the other hand, due to their temporary or part-time nature, bridge
jobs generally allow more flexibility than full-time career positions.
"Golden parachute" agreements may include all of the following, except
cash.
company stock.
medical and life insurance.
reduced pension benefits. Ans✓✓✓ reduced pension benefits.
Golden parachute agreements may include various combinations of cash,
company stock, medical and life insurance, extra pension benefits, and other
benefits.
,2017 Earnings cap for singles? Ans✓✓✓ $16,920
A Cash Flow statement is used to calculate what? And what does it have on it?
Ans✓✓✓ Inflows and out flows. Not assets and liabilities.
A direct rollover is a transaction in which benefits from a qualified plan are rolled
over directly to
the individual with a check in their name.
a participant's checking or savings account.
another eligible retirement plan.
a conduit IRA. Ans✓✓✓ another eligible retirement plan.
A direct rollover may be accomplished by any reasonable means of direct
payment to an eligible retirement plan, including a wire transfer or mailing of a
check negotiable only by the plan's trustee. Using a conduit IRA is a means of an
indirect rollover.
A distribution cannot be made from a TSA until the employee does which of the
following? Ans✓✓✓ Distributions can be made when an employee separates
from service, attains age 591⁄2, becomes disabled or dies, or qualifies under
hardship rules.
A penalty is imposed for failing to take the required minimum distribution (RMD).
10%
20%
,50%
100% Ans✓✓✓ 50%
The penalty for failing to take the RMD is 50% of the difference between what
should have been taken and what was taken.
A power of attorney is an effective tool for incapacity planning if
it is a general power of attorney.
it is a durable power of attorney.
it is a springing power of attorney.
both b and c. Ans✓✓✓ both b and c.
A durable power of attorney continues after a principal's incapacity, and a
springing power of attorney becomes effective when the principal becomes
incapacitated. The general power of attorney is not an effective tool for incapacity
planning for a simple reason: The agent's authority ceases when the principal
either dies or becomes incapacitated.
A qualified plan must withhold 20% of any distribution that is
part of a trustee-to-trustee transfer.
rolled to a conduit IRA.
part of a lifetime annuity.
going to be rolled over to another qualified plan within 60-days. Ans✓✓✓ going
to be rolled over to another qualified plan within 60-days.
, The 20% withholding rule does not apply to direct rollover distributions or
trustee-to-trustee transfers; the 20% withholding rule does apply to indirect
rollover distributions, such as a 60-day rollover.
A Roth IRA distribution is considered to be "qualified" if... Ans✓✓✓ ...a five-year
holding period is met and the distribution is made after the attainment of age 591⁄2,
death, or disability, or if it is made for the purchase of a first-time home
(maximum $10,000).
A standardized Medigap plan is designed to cover
long-term care expenses when treatment lasts longer than 100 days.
Medicare-approved charges that are not paid by Medicare.
charges that are considered nonmedical and are not covered by Medicare.
Ans✓✓✓ Medicare-approved charges that are not paid by Medicare.
Medigap insurance is designed to supplement Medicare's benefits by filling in
some of what Medicare does not cover, such as deductibles and coinsurance; it
covers only Medicare-approved charges. Standardized Medigap plans pay only for
long-term care while the beneficiary qualifies for benefits from Medicare, and is
limited to paying the coinsurance from the 21st through 100th days.
A trustee-to-trustee transfer is an example of a
direct rollover.
indirect rollover.
conduit rollover.
