TAX
FINRA
Savings Plan
Customer Accounts
Life Ins. & VAs
100
Dave Grohl owns the Tigers Balanced Fund and is reinvesting his dividends and capital gains back into his holdings. When will this client be subject to a taxable event?
What is upon receipt of dividend
100
What is the policy for the review and retention rules for mutual fund retail communications?
What is The communication and a copy of the approval must be kept on file for at least three years
100
How much can be contributed to a Coverdell Savings Plan?
What is $2,000 per year
100
In an account opened under the Uniform Gifts/Transfers to Minors Act, the primary Social Security number is the
What is the minor's
100
When selecting a settlement option on a variable annuity, the life expectancy table is used to calculate the…
What is the first monthly payment
200
The federal government is concerned that the economy is headed for a tailspin. Under Keynesian economic theory, which of the following actions should be taken?
What is Cut taxes. Keynesian=fiscal
200
Under the Telephone Consumer Protection Act (TCPA) of 1991, what are the acceptable hours of operation for an information helpline?
What is 24/7
200
Paul wants to set up a pension plan for his small business but does not want to obligate the company to making set annual contributions, nor does he want a plan that will be complex or expensive to administer. Which plan would be the best choice for Paul's company?
What is SEP Plan
200
Adrian has a small business, but it is growing rapidly through the acquisitions of other businesses. He has set aside a large sum of money to purchase Amy's Corporation. All that remains before the deal is completed is to settle several small legal matters. Adrian knows this will occur within the next six months, but is unsure exactly when. If Adrian decides to invest his money temporarily in Treasury bonds until he needs the funds to complete the purchase, which two of the following risks are the most serious for him?
What is Interest rate risk & timing risk
200
In which types of Annuities will a customer own accumulation units?
What is Periodic payment deferred annuity & single payment deferred annuity
300
An investor who has owned shares in a mutual fund for eight months receives a cash distribution. The distribution is from gains on the sale of securities held in the fund's portfolio for eighteen months. At what tax rate are these distributions taxed?
What is Capital gains rates
300
What must a RR do when he/she receives a complaint from a customer?
What is Give the complaint to the branch manager who must keep a copy of the complaint in a separate complaint file, along with a record of action taken on the complaint, if any.
300
An individual works for the ABC Company. The company provides a retirement plan for their employees. The amount deposited into the plan will vary the most from period-to-period if the plan is a
What is Profit-sharing plan
300
A broker-dealer has filed for bankruptcy. One customer's account at the firm contains securities valued at $650,000 as of the date of the bankruptcy filing. How much would the SIPC cover?
What is SIPC will cover $500,000 of the account's value; the customer has a claim for the rest as a general creditor of the firm.
300
A 72-year-old grandfather wishes to buy an annuity for his son (age 45) and his grandchild (age 15). What type of annuity would be best suited for the grandfather's intentions?
What is Joint and last survivor annuity
400
Long-term capital gains distributions from mutual funds are reported to investors for tax purposes on IRS Form
What is 1099-DIV
400
Under what Code are all decisions binding and cannot be appealed?
What is Code of Arbitration
400
The main disadvantage of 529 Prepaid Tuition Plans compared to 529 Savings Plans is that
What is The account owner may lose financially if the student does not attend a public school in that state
400
For most suspicious transactions depending on the facts and circumstances surrounding the transaction, this type of report must be filed
What is a Suspicious Activity Report
400
Emma Watson wants to take a partial surrender of cash from her variable life contract. She decides to lower her death benefit and withdraw the maximum amount of cash allowed. For tax purposes, how is this partial surrender going to be accounted for?
What is The money will not be taxable up to the amount of net premiums paid because "principal first" rules apply.
500
When the discount rate increases, the prices of high-grade bonds would tend to….
What is fall
500
A dishonest broker tactic that involves convincing a client to purchase a stock because it's about to pay a dividend. The broker pretends that this recommendation is in the client's best interest because the dividend will supposedly generate instant returns for the client. In reality, the trade is in the broker's best interest because of the commissions it will generate. The recommendation is dishonest because once a stock is trading ex-dividend, its price decreases by the amount of the dividend, and the investor does not come out ahead.
What is selling a dividend
500
70 1/2 years of age is when contributions to this type of savings plan end and withdrawals must begin.
What is an IRA
500
Partnerships, corporate accounts, and trusts all require ____ while joint policies do not
What is Supplemental documentation
500
Justin Timberlake purchased the Western Vistas variable life contract one year ago. Although the contract performed well, Justin has never understood the policy and has informed his RR, Wayne Johns, that he wants out of the contract. What option is available to Justin?
What is he may be able to convert his policy into a whole life contract offered by Wayne's firm.
M
e
n
u