a variable annuity has which of the following characteristicsarizona state employee raises 2022

B) Corporate debt securities A)IPO. The $30,000 contract value represents $10,000 of contributions and $20,000 of earnings. At the end of the year your account has a value of 10750. A)II and III (Check all that apply.) U.S. Securities and Exchange Commission. Reference: 12.1.4.1 in the License Exam. Reference: 12.1.2 in the License Exam, Question #21 of 48Question ID: 606812 B)II and III. Since the client is older than 59 at the time of distribution, the additional 10% penalty tax is not incurred. Question #24 of 48Question ID: 606806 Based on the clients profile which of the following would be the best recommendation? *Insurance companies introduced the variable annuity as an opportunity to keep pace with inflation. Only variable annuities have payout plans that provide the client income for life. \hspace{7pt} a. December 303030, to record the payroll. With variable annuities policyholders can choose from a number of investment opportunities. You can buy an annuity with either a lump sum or a series of payments, and the accounts value will grow accordingly. D)A variable annuity, Variable annuities offer tax-deferred growth and are suitable for achieving supplemental retirement income. D) I and III. The amount taxed is the amount of the lump-sum payment minus the deceased's cost basis in the investment. The investor has already paid tax on the contributions but the earnings have grown tax-deferred. B)I and II During payout, distributions will fluctuate due to performance in the separate account. A) two people are covered and payments continue until the second death. B) the number of annuity units is fixed, and their value remains fixed. D)I and III. *An immediate annuity has no accumulation period. withdraw funds without any tax consequences. D)It cannot be determined until the April return is calculated. The figure below illustrates a six-month annuity with monthly payments. A customer has a nonqualified variable annuity. *Contributions to a nonqualified annuity are made with the owner's after-tax dollars. The downside was that the buyer was exposed to market risk, which could result in losses. *As contributions are made with after-tax dollars, only the earnings generated are taxed on withdrawal. An annuity may be purchased under all of the following methods EXCEPT: A deferred annuity is an insurance contract that promises to pay the buyer a regular stream of income, or a lump sum, at some date in the future. Ideally they should be funded with readily available cash rather than using funds liquidated from existing investments. D)an accounting measure used to determine payments to the owner of the variable annuity. The value of the annuity units varies. B)fixed in value until the holder retires. Similarly, CDs are insured, thereby eliminating risk and guaranteeing a return. With regard to a variable annuity, all of the following may vary EXCEPT: They are more suitable for individuals who can fund the annuity with cash, want to supplement existing retirement benefits they have already funded, are comfortable with the market risk associated with a VA separate account portfolio and anticipate a long retirement. Though there is no beneficiary designation during the annuitization, this is not an issue for this annuitant. B) single payment deferred annuity. A) The fact that the annuity payment may increase or decrease. Reference: 12.1.2 in the License Exam. c) Construct a contingency table showing all the joint and marginal probabilities. B)I and III. All of the following investment strategies offer either fully or partially tax-deductible contributions to individuals who meet eligibility requirements EXCEPT: B)part earnings and part cost basis Both products typically have a wide range of options across equities, bonds and money market instruments. B)Two-thirds of the withdrawal is taxable as ordinary income. An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is: A) 2800. A)variable annuities will protect an investor against capital loss. A the safety of the principal invested B the yield is always higher than bond yields. B) II and III The creation of an estate. A) a minimum rate of return is guaranteed. The nature of the securities invested in-bonds and growth stocks-makes it necessary that sales representatives and their principals be licensed in securities as well as insurance. A) Dow Jones Industrial Average. We also reference original research from other reputable publishers where appropriate. *Only variable annuities have payout plans that provide the client income for life. The payout of an annuitized variable annuity account changes from month to month in a manner determined by which of the following? Rolling two 222s followed by one 666 on three tosses of a fair die, Use the table 1 and table 2 to complete the table 3 Future annuity payments will vary according to the separate account's performance. Can I Borrow from My Annuity for a House Down Payment? national origin, genetics, disability, age, veteran status, or any other characteristic protected by law. A) The fact that the annuity payment may increase or decrease. D) III and IV. C) value of underlying securities held in the separate account. C)II and IV. Fixed interest rates during the payout period The value of each accumulation unit varies: Daily Variable annuities have Variable interest rates and benefits All of the following statements are true regarding the interest rate guarantees of fixed annuities, EXCEPT: a. it performs a single task b. it is self-contained and independent of other modules c. it is relatively short d. all of the above are chamcleristics of a program module 7. Reference: 12.1.1 in the License Exam. The growth portion is subject to a 10% penalty. B) a variable annuity contract is not required to be sold by prospectus because it is an insurance contract This chapter was updated on 15 December, 2005. Needs - are goal-directed forces that people experience. Supplemental income stream for retirement, not preservation of capital should be the catalyst to consider a VA and for anyone who may need access to the sum invested for any reason a VA would not be considered a suitable recommendation. A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic pay- ments to you, beginning either immediately or at some future date. c. The separate account provides for a guaranteed minimum return. Most annuities will not allow you to withdraw additional funds from the account once the payout phase has begun. B)value of annuity units. Question #13 of 48Question ID: 606822 When a variable annuity contract is annuitized, the number of annuity units is fixed. You can learn more about the standards we follow in producing accurate, unbiased content in our. Once the contract is annuitized, monthly payments to the customer are: *Variable annuity contracts must be sold by prospectus due to the characterization of the separate accounts as securities, which must be registered under the Securities Act of 1933 and the Investment Company Act of 1940. Question #18 of 48Question ID: 606827 Upon John's death during the accumulation period, Sue takes a lump-sum payment. Your customer, still working, informs you that she will be funding a variable annuity you have recommended from 2 sources: a refinancing of her primary home where she will be able to draw out equity that has built up since it was purchased 15 years ago, and cashing out another variable annuity that she recently purchased within the past 2 years without a lifetime income rider like the one you have recommended. It is innate and universal. B)I and IV. D) Variable annuity. D)value of accumulation units. C)Growth mutual funds The tax on this is $2,800 ($10,000 x 28%). This makes a total of $4,000 tax and penalty paid on the random withdrawal. This recommendation is: D) unsuitable because her situation exposes her to surrender charges and early withdrawal penalties in exchange for insufficient benefits. Annuities due are a type of annuity where payments are made at the beginning of each payment period. B)Universal variable life policy. An annuity is an insurance product that promises to pay out income at a future date based on invested funds. A trend is formed from non-repetitive actions of people. D) the payout plans provide the client income for life. An investor who purchases a fixed annuity contract assumes purchasing-power risk. Your client owns a variable annuity contract with an AIR of 4%. C) such an annuity is designed to combat inflation risk. C)insurance companies keep variable annuity funds in separate accounts from other insurance products. Changes in payments on a variable annuity correspond most closely to fluctuations in the: Over the past five years, 's dividend yield has averaged % per year. B) I and III. Reference: 12.1.2.1.2 in the License Exam. C. The tax on this is $2,800 ($10,000 x 28%). I. *The investor has already paid tax on the contributions but the earnings have grown tax-deferred. D) reevaluate whether the recommendation for the VA contract is still suitable based on the clients proposed funding of the investment. The most suitable option and one considered effective for married couples is a single joint and last survivor contract. It's somewhat similar to a variable life insurance policy in that: You can choose how the product's value is invested. Question #37 of 48Question ID: 606817 A variable annuity does not guarantee an earnings rate because earnings will depend on the performance of the separate account. C)such an annuity is designed to combat inflation risk. All of the following statements concerning a variable annuity are correct EXCEPT: The value of the customer's account is converted into annuity units if and when the customer decides to annuitize the contract. d) What is the probability that a user is from the United States, given that he or she logs on every day? A)Purchasing power risk. For this potential advantage, the investor, rather than the insurance company, assumes the investment risk. It may be used by nongovernmental . \text{Salaries:} && \text{Deductions:}\\ *Variable annuities offer tax-deferred growth and are suitable for achieving supplemental retirement income. This guideline has been prepared for use by Federal agencies. D)II and IV. && \hspace{10pt}\text{Group insurance} & \underline{45,630}\\ Herpes Zoster has all of the following characteristics except: Group of answer choices. B) II and IV. Contributions to a nonqualified annuity are made with the owner's after-tax dollars. He makes several statements regarding the contract. B)unsuitable because her situation exposes her to surrender charges and early withdrawal penalties in exchange for insufficient benefits. Immediate annuities purchase annuity units directly. The value of an annuity unit varies from month to month according to the performance of the separate account in comparison to the assumed interest rate. "Variable Annuities: What You Should Know," Pages 67. D) I and III. D)suitable if she has enough equity in the home to fund the variable annuity without cashing out the other VA contract, Based on the information given in the question, the VA recommendation would not be suitable. A) A variable annuity D)A 10% penalty plus the payment of ordinary income tax on funds withdrawn in excess of the owner's basis. The following changes have been incorporated into Special Publication 800145, as of the date indicated - . *VAs are less suitable for individuals who have not yet made maximum contributions to other retirement accounts such as IRAs and 401ks. Reference: 12.3.1 in the License Exam, Question #30 of 48Question ID: 606833 U.S. Securities and Exchange Commission. A customer, who has contributed to an IRA and to an employer matching 401(k) plan continuously for many years, wants to purchase an annuity contract to add additional monthly income once retired. Consequently, the client pays taxes only on the growth portion of the withdrawal ($10,000). C) suggest to the client that perhaps a loan or refinancing his vacation home might be a better way to fund the contract purchase. The money paid in will be returned tax free, but the earnings portion will be taxed as ordinary income. A variable annuity is a combination of 2 products: an insurance contract and a mutual fund. A)There is no tax as the withdrawal is considered return of capital. Once the contract is annuitized, monthly payments to the customer are: Often used for retirement planning purposes, it is meant to provide a regular (monthly, quarterly, annual) income stream, starting at some point in the future. Reference: 12.1.2.1.1 in the License Exam. A)Fixed annuities. When a partial withdrawal is made from an annuity, the earnings are considered to be taken out first for tax purposes (or LIFO). Variable annuities operate in similar ways to . PGIM Fixed Income has over $900 billion in assets under management across a broad array of fixed . *Distributions from a nonqualified plan represent both a return of the original investment made in the plan with after-tax dollars (a nontaxable return of capital) and the income from that investment. Diagnosis is made by punch biopsy. D) I and III A) I and II If a 42-year-old customer has been depositing money in a variable annuity for 5 years, and he plans to stop investing but has no intention of withdrawing any funds for at least 20 years, he is holding: B)Variable annuities. During the accumulation phase, you make purchase payments. C)number of accumulation units. Income that cannot be outlived by the owner The number of annuity units becomes fixed when the contract is annuitized; it is the value of each unit that fluctuates. The anti-money laundering rules for insurance companies highlight that each insurance company - like other financial institutions subject to anti-money laundering program requirements - must develop a risk-based anti-money laundering program that identifies, assesses, and mitigates any risks of money laundering, terrorist financing, and other a life insurance holder lives longer than expected. D) an accounting measure used to determine the contract owner's interest in the separate account. D) accumulation shares. D) I and IV. Vaccine has decreased the incidence. A) I and III. The owner of a variable annuity has all of the following rights EXCEPT the right to vote: a. for the board of trustees b. to change the separate account's investment objective c. for distributing income and capital gains d. for dissolution of the trust c. for distributing income and capital gains. Annual depreciation on the machine is$12,000, and the tax rate of the company is 25%. C) the yield is always higher than bond yields. C) payments continue for a pre-determined period of time. The most popular type of variable annuity is a deferred annuity. Distribution of dividends occurs during the accumulation period. B) The entire $10,000 is taxable as ordinary income. How Are Nonqualified Variable Annuities Taxed? *Variable annuity contracts were devised to help investors keep pace with inflation. Distribution can take place before or during any solicitation for sale. Reference: 12.3.3 in the License Exam. B) a variable annuity contract is not required to be sold by prospectus because it is an insurance contract Here is how guaranteed lifetime annuities work. order now. Describe. 's dividend yield was % last year. Reference: 12.3.3 in the License Exam. Usually the term "annuity" relates to a contract between an individual and a life insurance company. Following the transition to T+1 in the U.S. markets, Commission staff will continue to work with industry leaders, public interest advocates, investors and other regulators to assess the future feasibility of a T+0 settlement standard cycle, and seek to identify ways to overcome the challenges associated with such a move, as articulated in the . Fixed annuities. About Us In a variable annuity contract, the provision that guarantees the annuitant payments for life is called the: Contributions to an IRA may be tax deductible, depending on the individual's earnings and participation in a company-sponsored qualified retirement plan. Reference: 12.3.3 in the License Exam. The number of variable annuity accumulation units can rise during the accumulation period when additional units are being purchased. "Variable Annuities: What You Should Know," Page 10. The entire amount is taxed as ordinary income. On an annual basis, the machine will produce 20,000 units with an expected selling price of $10, prime costs of$6 per unit, and a fixed cost allocation of $3 per unit. D)separate account may consist of mutual funds. D)I and III. It is the starting point of motivation because they generate emotions. \hspace{10pt} \text{Warehouse salaries} & 110,000 & \hspace{10pt} \text{Social security tax withheld} & 51,714\\ A Variable Annuity has which of the following characteristics? What percentile is represented by $710? Once a variable annuity has been annuitized: Indexed annuity owners receive credited interest tied to the fluctuations of the linked index An immediate annuity consists of a single premium An immediate annuity has a single premium. C) a variable annuity contract does not guarantee any type of return When a variable contract is annuitized (distributed in regular payments, not as a lump sum), the number of accumulation units is multiplied by the unit value to arrive at the account's current value. Who assumes the investment risk in a variable annuity contract? All of the following are characteristics of Variable Annuity contracts EXCEPT The possibility of higher returns and greater income than fixed annuities, but there's also a risk that the account will fall in value A There are no surrender fees B Guaranteed death benefit C Tax deferred growth D Training Explanations *A joint life with last survivor contract covers multiple annuitants and ceases payments at the death of the last surviving annuitant. Periodic payment deferred annuity. If your client, who is in the 28% tax bracket, makes a lump-sum withdrawal of $15,000, what tax liability results from the withdrawal? IV. D)I and IV, Universal variable life policies are insurance company products that should be purchased primarily for the insurance features they offer rather than as an investment. An annuitant assumes the investment risk of a variable annuity and is not protected by the insurance company from capital losses. A) number of annuity units. *Accumulation units represent units of ownership in a life insurance company's separate account when the contract is in the accumulation stage. If an investor has a fixed-annuity contract with an insurance company, which of the following risks is assumed by the investor? B)changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices. C) III and IV. A variable annuity's separate account is: A) used for the investment of monies paid by variable annuity contract holders B) separate from the insurance company's general investments C) operated in a manner similar to an investment company D) as much a security as it is an insurance product All of the above Distributions to the annuitant will fluctuate during the payout period. \hspace{10pt} State unemployment (employer only), 3.8%3.8\%3.8% Future annuity payments will vary according to the separate account's performance. D)II and III. *When a variable contract is annuitized (distributed in regular payments, not as a lump sum), the number of accumulation units is multiplied by the unit value to arrive at the account's current value. She may choose to receive monthly payments for the rest of her life.

The Club At Hammock Beach Hoa Fees, Virtue Flats Oregon Trail, Articles A