MYGA
The specific rate which the client receives for the initial term is called the ____.
Initial Guaranteed Interest Rate
Form 1099-R documents are sent to clients at the end of what month?
January
T/F: The owner's original investment in a qualified plan is taxable when withdrawn.
True
This Index Account Declared Rate Adjuster, declared at the start of an Index Account Term, will be used to determine what portion, as a percentage, of any calculated index growth will be awarded as end-of-term interest.
Participation Rate
T/F: An owner's investment is absolutely 100% guaranteed with a variable annuity.
False
A ___ is a penalty for prematurely withdrawing funds from an annuity before the end of the surrender period.
CDSC/Surrender Charge
The typical deadline to file taxes in the U.S. is ___.
April 15th
What is the Form 5498 used to report?
Contributions and Fair Market Value of IRAs, reported to the IRS.
This method to calculate the change in an index uses only two values from two points in time – the index value at the start of the index term, and the index value at the end of the index term.
Point-to-Point
A _______________ is an annually declining scale of percentages that the company assesses against a withdrawal amount that is in excess of the "free withdrawal provision" (or "annual withdrawal amount" if applicable).
Surrender Charge Schedule
T/F: A Multi-Year Guaranteed Annuity (MYGA) is a retirement investment vehicle that guarantees a specific interest rate over a pre-determined period of time.
True
What does a W2 report?
Reports income received from employer.
What is the formula to calculate an RMD?
RMD Basis Value [12/31 Account Value + Actuarial Present Value] ÷ Life Expectancy Factor
This Index Account Declared Rate Adjuster, declared at the start of an Index Account Term, is subtracted from any calculated index growth to determine end-of-term interest.
Spread Rate
This special feature allows customers to maintain the percentages they originally elected by automatically and periodically transferring funds back into the percentages they originally chose.
Automatic Portfolio Rebalancing (Fund Auto Rebalance)
T/F: Subsequent Payments are allowed on Single Premium Deferred Annuities (SPDA)
False
What does a Form 1099-R report?
Reports distributions/liquidations on annuities and life insurance policies.
A 10% early distribution tax may apply to the ____ withdrawal when the owner is less than 59½ years of age.
taxable portion of the
This is a product feature that promises the account value will receive a credit at the end of specific period of time that is equal to the premiums, adjusted by withdrawals, multiplied by a percentage over 100%.
Guaranteed Minimum Account Value
Variable annuities have a list of "Available Funds" in which the money may be invested.
__________________ is a term which indicates a subset of funds (that are not categorized) which are available to a client with a variable annuity contract that has a living benefit rider.
Designated Funds
Guaranteed Minimum Rate (GMR) can best be defined as ___.
Rate that Delaware Life guarantees the renewal rate will never go below. Also known as the “floor” rate
If a client made a withdrawal from an annuity contract that was purchased pre-TEFRA, the ___ would come out first, before the ___.
cost basis / earnings
Age 73 represents...
The age that the government expects individuals to "be retired" and to be withdrawing from their retirement accounts.
This product-specific feature available at issue, offers a preset combination of interest crediting index strategies and allocation percentages, determined by the company.
Precision Portfolio
T/F: The Fund Fee Range is located in the product prospectus.
True