GEB 3006 UCF FINAL EXAM | QUESTIONS AND ANSWERS |
VERIFIED ANSWERS | LATEST EXAM
Employer benefits can be worth up to ___ of your base salary.
-60%
-10%
-50%
-25% - CORRECT ANSWER - 50%
Generally, the two main employer benefits with the highest value are:
-Vacation and sick pay
-ESOP plans and health clubs
-Discount purchase plans and vacation plans
-Retirement and health plans - CORRECT ANSWER - Retirement and health
plans
Assume you have a 401-K plan and that your employer requires you to stay five
years to "vest" in the plan. If you leave the company in three years then,
-You will lose the amount your employer contributed to the plan plus the
earnings, but you will retain your contributions and the earnings thereon
-You will lose all the money in your 401-K plan
-You will be able to rollover 100% of the plan assets to a rollover IRA
-You will lose the amount you have saved in the plan plus the earnings, but you
will retain the employer's contributions and the earnings thereon - CORRECT
,ANSWER - You will lose the amount your employer contributed to the plan
plus the earnings, but you will retain your contributions and the earnings
thereon
Which of the following health plans offers the most choice in doctors and has
the highest cost?
-ACA
-PPO
-HMO
-HDHP - CORRECT ANSWER - PPO
Which of the following health plans generally requires that you first see your
primary care physician and remain within a restricted network of doctors?
ACA
HDHP
HMO
PPO - CORRECT ANSWER - HMO
Which of the following is TRUE?
-Flexible spending and health savings accounts are shown as reductions to your
W-2 income, and thus save federal taxes
-Unused flexible spending account balances may be carried forward to future
years
-Health savings plan accounts can only be used for a PPO plan
-A health savings account must be used each year - CORRECT ANSWER -
Flexible spending and health savings accounts are shown as reductions to your
W-2 income, and thus save federal taxes
,After enrolling in your primary health insurance plan, which of the following is
the next MOST important insurance that all employees should sign up for
during open enrollment?
Supplemental health insurance
Disability insurance
Life insurance
Dental and vision insurance - CORRECT ANSWER - Disability insurance
Assume the following:
Gross salary = $120,000
Employee contributions to 401-K = $12,000
Employer match to 401-K = $5,000
Flexible spending account savings = $2,000
Health insurance premiums paid by employee = $3,000
Health insurance paid directly by employer = $8,000
What is the W-2 taxable income?
$90,000
$95,000
$120,000
$98,000
$103,000 - CORRECT ANSWER - 103000
An employer offers a 401-K plan under the following terms:
Employer will match 80% of all contributions up to 6%.
If an employee saves 10% of his/her salary, then the employer will match ___ of
their salary.
, 8%
6%
10%
4.8% - CORRECT ANSWER - 4.8%
Employees without a pension plan should try to save at least _____ of their
salary (including employer 401-K plan matches) throughout their working
careers.
10-15%
5-10%
15-20%
8-12% - CORRECT ANSWER - 10-15%
Fidelity Investments recommends that individuals without pensions have about
___ times their salary at age 67 in order to have a sufficient amount of money to
retire.
8
10
6
12 - CORRECT ANSWER - 10
Assume you receive a tax free benefit worth $1,000/year. What is the pretax
equivalent of this benefit for individuals in a 12% marginal tax bracket?
$1,136
$1,000
$1,176
VERIFIED ANSWERS | LATEST EXAM
Employer benefits can be worth up to ___ of your base salary.
-60%
-10%
-50%
-25% - CORRECT ANSWER - 50%
Generally, the two main employer benefits with the highest value are:
-Vacation and sick pay
-ESOP plans and health clubs
-Discount purchase plans and vacation plans
-Retirement and health plans - CORRECT ANSWER - Retirement and health
plans
Assume you have a 401-K plan and that your employer requires you to stay five
years to "vest" in the plan. If you leave the company in three years then,
-You will lose the amount your employer contributed to the plan plus the
earnings, but you will retain your contributions and the earnings thereon
-You will lose all the money in your 401-K plan
-You will be able to rollover 100% of the plan assets to a rollover IRA
-You will lose the amount you have saved in the plan plus the earnings, but you
will retain the employer's contributions and the earnings thereon - CORRECT
,ANSWER - You will lose the amount your employer contributed to the plan
plus the earnings, but you will retain your contributions and the earnings
thereon
Which of the following health plans offers the most choice in doctors and has
the highest cost?
-ACA
-PPO
-HMO
-HDHP - CORRECT ANSWER - PPO
Which of the following health plans generally requires that you first see your
primary care physician and remain within a restricted network of doctors?
ACA
HDHP
HMO
PPO - CORRECT ANSWER - HMO
Which of the following is TRUE?
-Flexible spending and health savings accounts are shown as reductions to your
W-2 income, and thus save federal taxes
-Unused flexible spending account balances may be carried forward to future
years
-Health savings plan accounts can only be used for a PPO plan
-A health savings account must be used each year - CORRECT ANSWER -
Flexible spending and health savings accounts are shown as reductions to your
W-2 income, and thus save federal taxes
,After enrolling in your primary health insurance plan, which of the following is
the next MOST important insurance that all employees should sign up for
during open enrollment?
Supplemental health insurance
Disability insurance
Life insurance
Dental and vision insurance - CORRECT ANSWER - Disability insurance
Assume the following:
Gross salary = $120,000
Employee contributions to 401-K = $12,000
Employer match to 401-K = $5,000
Flexible spending account savings = $2,000
Health insurance premiums paid by employee = $3,000
Health insurance paid directly by employer = $8,000
What is the W-2 taxable income?
$90,000
$95,000
$120,000
$98,000
$103,000 - CORRECT ANSWER - 103000
An employer offers a 401-K plan under the following terms:
Employer will match 80% of all contributions up to 6%.
If an employee saves 10% of his/her salary, then the employer will match ___ of
their salary.
, 8%
6%
10%
4.8% - CORRECT ANSWER - 4.8%
Employees without a pension plan should try to save at least _____ of their
salary (including employer 401-K plan matches) throughout their working
careers.
10-15%
5-10%
15-20%
8-12% - CORRECT ANSWER - 10-15%
Fidelity Investments recommends that individuals without pensions have about
___ times their salary at age 67 in order to have a sufficient amount of money to
retire.
8
10
6
12 - CORRECT ANSWER - 10
Assume you receive a tax free benefit worth $1,000/year. What is the pretax
equivalent of this benefit for individuals in a 12% marginal tax bracket?
$1,136
$1,000
$1,176
