Arizona Life Accident & Health Insurance Exam
1333 | 2026 Actual Questions with Answers
◉ Qualified Plan Requirements. Answer: 1) Be in writing 2)pr0vided
f0r benefit 0f empl0yee 3) must satisfy age and serive standards 4)
cann0t be discriminat0ry 5) c0ntributi0ns cann0t exceed yearly
maximus 6) must pr0vide surviv0rship benefits 7) must meet
miniumum vesting standards 8) cann0t be t0p heavy
◉ Advantages 0f Qualified plans. Answer: - empl0yer and empl0yee
c0ntributi0ns are tax deductivble and accumulate tax deferred
- Withdrawls bef0re 59.5 is a 10% penalty
- must begin miniumum distributi0ns by age 70.5
◉ Qualified Plan distributi0ns. Answer: - taxable up0n withdrawl
- 10% penalty up0n withdrawl bef0re 59.6
- can take 0ut w/0 penalty if death, div0rce, qualified financial
hardship, plan l0an 0r qualified r0ll0ver, 1st time h0me buyer,
disability 0f 0wner
- if y0u take 0ut the m0ney early, its a 20% penalty
,- must r0ll0ver w/in 60 days 0r its c0nsidered a premature
distributi0n
◉ Penalty f0r Withdrawl 0f Qualified Plan. Answer: - a 10% penalry
plus applicable state and federal taxes
◉ IRA IIndividual Retirement Acc0unt). Answer: - all individuals
wh0 have earned inc0me
- p0ssible tax deducti0ns
- tax deferral 0f gains
- Can c0ntribute up t0 5,000
- can add 1,000 "catch up" if 0ver 50
◉ Educati0n IRA. Answer: - meth0d t0 pr0vide funding
- Can be transferred t0 an0ther IRA at 30
◉ Secti0n 529 Plans. Answer: - state pr0vided
- can be funded by after tax d0llars
- can pay prepaid tuiti0n
- All earnings exempt fr0m federal taxes
- If withdrawn f0r unqualified withdrawl, 10% penalty
,◉ R0th IRA. Answer: - All0ws 0wner t0 make n0n tax deductible
c0ntributi0ns
- t0 get withdrawls tax free, the acc0unt must be in existence f0r 5
years
- can add m0ney tax free up t0 5k
- distributi0ns are tax free
- acc0unt is 0nly all0wed f0r pe0ple wh0's inc0me d0es n0t exceed a
certain am0unt
◉ SEP IRA (simplified Empl0yee Pensi0n Plan). Answer: - empl0yer
sp0ns0red IRA f0r small empl0yers
- c0ntrinuti0ns deductible t0 empl0yer
- Empl0yee must have w0rked f0r 3 0f last 5 years
- c0ntributi0ns by empl0yer cant exceed 49k 0r 25% 0f inc0me,
whichever is lesser
- c0ntributi0ns f0r empl0yees cant exceed 16,500
◉ Ke0gh Plan. Answer: - self empl0yed and empl0yees
- replaced by SEPs
◉ 401k Plan. Answer: - all0ws empl0yees t0 save f0r retirement tax
free
- m0ney is taken 0ut pre-tax, and can be matched (and deductible t0
empl0ywer)
, - Withdrawl penalty 0f 10% pri0r t0 age 59.5
- Miniumum distributi0ns by age 70.5
- 2011 max was 16,500
◉ 403(b)/tax-sheltered Annuity. Answer: - availbale f0r empl0yees
0f n0npr0fits, sch00ls universities, churches & h0spitals
- just like 401k plans
◉ 457 Deffered C0mpensati0n. Answer: - available f0r empl0yess 0f
state and l0cal g0vt
-the plan is 0wned by empl0yer
◉ Pr0fit Plan. Answer: - part 0f defined c0ntribituti0n plan
- annual pr0fits shared am0ng empl0yees
- n0 guarantee 0f payment
◉ Pensi0n Plan. Answer: Retirement Plan that calculates benefit
based up0n years 0f service and inc0me averages
◉ ES0P. Answer: - empl0yee st0ck 0wnership plan
- defined c0ntributi0n plan that pr0vides empl0yer st0ck t0
empl0yees based 0n inc0me and pr0fits 0f c0mpany
1333 | 2026 Actual Questions with Answers
◉ Qualified Plan Requirements. Answer: 1) Be in writing 2)pr0vided
f0r benefit 0f empl0yee 3) must satisfy age and serive standards 4)
cann0t be discriminat0ry 5) c0ntributi0ns cann0t exceed yearly
maximus 6) must pr0vide surviv0rship benefits 7) must meet
miniumum vesting standards 8) cann0t be t0p heavy
◉ Advantages 0f Qualified plans. Answer: - empl0yer and empl0yee
c0ntributi0ns are tax deductivble and accumulate tax deferred
- Withdrawls bef0re 59.5 is a 10% penalty
- must begin miniumum distributi0ns by age 70.5
◉ Qualified Plan distributi0ns. Answer: - taxable up0n withdrawl
- 10% penalty up0n withdrawl bef0re 59.6
- can take 0ut w/0 penalty if death, div0rce, qualified financial
hardship, plan l0an 0r qualified r0ll0ver, 1st time h0me buyer,
disability 0f 0wner
- if y0u take 0ut the m0ney early, its a 20% penalty
,- must r0ll0ver w/in 60 days 0r its c0nsidered a premature
distributi0n
◉ Penalty f0r Withdrawl 0f Qualified Plan. Answer: - a 10% penalry
plus applicable state and federal taxes
◉ IRA IIndividual Retirement Acc0unt). Answer: - all individuals
wh0 have earned inc0me
- p0ssible tax deducti0ns
- tax deferral 0f gains
- Can c0ntribute up t0 5,000
- can add 1,000 "catch up" if 0ver 50
◉ Educati0n IRA. Answer: - meth0d t0 pr0vide funding
- Can be transferred t0 an0ther IRA at 30
◉ Secti0n 529 Plans. Answer: - state pr0vided
- can be funded by after tax d0llars
- can pay prepaid tuiti0n
- All earnings exempt fr0m federal taxes
- If withdrawn f0r unqualified withdrawl, 10% penalty
,◉ R0th IRA. Answer: - All0ws 0wner t0 make n0n tax deductible
c0ntributi0ns
- t0 get withdrawls tax free, the acc0unt must be in existence f0r 5
years
- can add m0ney tax free up t0 5k
- distributi0ns are tax free
- acc0unt is 0nly all0wed f0r pe0ple wh0's inc0me d0es n0t exceed a
certain am0unt
◉ SEP IRA (simplified Empl0yee Pensi0n Plan). Answer: - empl0yer
sp0ns0red IRA f0r small empl0yers
- c0ntrinuti0ns deductible t0 empl0yer
- Empl0yee must have w0rked f0r 3 0f last 5 years
- c0ntributi0ns by empl0yer cant exceed 49k 0r 25% 0f inc0me,
whichever is lesser
- c0ntributi0ns f0r empl0yees cant exceed 16,500
◉ Ke0gh Plan. Answer: - self empl0yed and empl0yees
- replaced by SEPs
◉ 401k Plan. Answer: - all0ws empl0yees t0 save f0r retirement tax
free
- m0ney is taken 0ut pre-tax, and can be matched (and deductible t0
empl0ywer)
, - Withdrawl penalty 0f 10% pri0r t0 age 59.5
- Miniumum distributi0ns by age 70.5
- 2011 max was 16,500
◉ 403(b)/tax-sheltered Annuity. Answer: - availbale f0r empl0yees
0f n0npr0fits, sch00ls universities, churches & h0spitals
- just like 401k plans
◉ 457 Deffered C0mpensati0n. Answer: - available f0r empl0yess 0f
state and l0cal g0vt
-the plan is 0wned by empl0yer
◉ Pr0fit Plan. Answer: - part 0f defined c0ntribituti0n plan
- annual pr0fits shared am0ng empl0yees
- n0 guarantee 0f payment
◉ Pensi0n Plan. Answer: Retirement Plan that calculates benefit
based up0n years 0f service and inc0me averages
◉ ES0P. Answer: - empl0yee st0ck 0wnership plan
- defined c0ntributi0n plan that pr0vides empl0yer st0ck t0
empl0yees based 0n inc0me and pr0fits 0f c0mpany
