GEB 3006 FINAL EXAM QUESTIONS & ANSWERS
Employer benefits can be worth up to ___ of your base salary. - Answer -50%
Generally the two main employer benefits with the highest value are: - 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, - 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? - 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? - Answer -HMO
Which of the following is TRUE? - 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? - Answer -Disability insurance
Employees without a pension plan should try to save at least _____ of their salary
(including employer 401-K plan matches) throughout their working careers. - 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. -
Answer -10
Fidelity Investments recommends that individuals without pensions have about ___
times their salary at age 30 in order to have a sufficient amount of money to retire. -
Answer -1
Which of the following statements is TRUE? - Answer -(all of these) All W-2 earnings
are subject to the 1.45% Medicare tax.
Employee contributions to social security are matched by their employer
If you are self employed, you will need to pay both the employee and employer share of
your social security and medicare tax
The Social Security or FICA tax is 6.2% and the maximum amount of earnings subject
to Social Security tax is $128,400 in 2018
, At what age will you become eligible for Medicare? - Answer -65
At what age are you eligible for early Social Security? - Answer -62, and the amount
received is a discounted benefit compared to the full retirement benefit
Which of the following statements is FALSE? - Answer -If you accepted a chance to
"resign" instead of being fired, then you are still eligible for state unemployment
benefits.
It is always a good idea to purchase disability insurance if offered by your employer. -
Answer -true
If you resign from a job, you will not be entitled to unemployment compensation. -
Answer -true
Which health plan has a low cost but high deductible? - Answer -HDHP
Unused savings in a Health savings accounts (HSA) can be carried forward to future
years. Unused savings can be invested and HSAs can only be used for PPO plans. -
Answer -false
The rules for flexible spending accounts generally require that employees use the
money within the current year or lose unused savings. - Answer -true
Which of the following statements is TRUE? - Answer -(all of them) 401-Ks provide tax
deferred savings.
Early withdrawals from a 401-K are subject to a 10% penalty (with some exceptions).
The employer match in a 401-K plan and the related earnings must be "vested" in order
to be the legal property of the employee.
When you leave your job, you should always rollover your 401-K assets to a self
directed rollover IRA. - Answer -true
Fidelity Investments studied customers with > $1 million in their 401-K account.
Which of the following was NOT an attribute of individuals who had saved over $1
million: - Answer -They considered mutual funds that invested primarily in bonds.
Which of the following retirement plans allows employees to save with after tax dollars
which grow tax free? - Answer -Roth 401-K Plans
Between 1990 and 2010, the average US savings rate was around: - Answer -5%
What two factors count for 65% of your FICO score? - Answer -Payment history and
outstanding debts
Employer benefits can be worth up to ___ of your base salary. - Answer -50%
Generally the two main employer benefits with the highest value are: - 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, - 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? - 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? - Answer -HMO
Which of the following is TRUE? - 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? - Answer -Disability insurance
Employees without a pension plan should try to save at least _____ of their salary
(including employer 401-K plan matches) throughout their working careers. - 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. -
Answer -10
Fidelity Investments recommends that individuals without pensions have about ___
times their salary at age 30 in order to have a sufficient amount of money to retire. -
Answer -1
Which of the following statements is TRUE? - Answer -(all of these) All W-2 earnings
are subject to the 1.45% Medicare tax.
Employee contributions to social security are matched by their employer
If you are self employed, you will need to pay both the employee and employer share of
your social security and medicare tax
The Social Security or FICA tax is 6.2% and the maximum amount of earnings subject
to Social Security tax is $128,400 in 2018
, At what age will you become eligible for Medicare? - Answer -65
At what age are you eligible for early Social Security? - Answer -62, and the amount
received is a discounted benefit compared to the full retirement benefit
Which of the following statements is FALSE? - Answer -If you accepted a chance to
"resign" instead of being fired, then you are still eligible for state unemployment
benefits.
It is always a good idea to purchase disability insurance if offered by your employer. -
Answer -true
If you resign from a job, you will not be entitled to unemployment compensation. -
Answer -true
Which health plan has a low cost but high deductible? - Answer -HDHP
Unused savings in a Health savings accounts (HSA) can be carried forward to future
years. Unused savings can be invested and HSAs can only be used for PPO plans. -
Answer -false
The rules for flexible spending accounts generally require that employees use the
money within the current year or lose unused savings. - Answer -true
Which of the following statements is TRUE? - Answer -(all of them) 401-Ks provide tax
deferred savings.
Early withdrawals from a 401-K are subject to a 10% penalty (with some exceptions).
The employer match in a 401-K plan and the related earnings must be "vested" in order
to be the legal property of the employee.
When you leave your job, you should always rollover your 401-K assets to a self
directed rollover IRA. - Answer -true
Fidelity Investments studied customers with > $1 million in their 401-K account.
Which of the following was NOT an attribute of individuals who had saved over $1
million: - Answer -They considered mutual funds that invested primarily in bonds.
Which of the following retirement plans allows employees to save with after tax dollars
which grow tax free? - Answer -Roth 401-K Plans
Between 1990 and 2010, the average US savings rate was around: - Answer -5%
What two factors count for 65% of your FICO score? - Answer -Payment history and
outstanding debts
