Quiz for:
Taxation of Personal Life Insurance and Annuities

Question 1

What type of IRA allows for tax-free withdrawals after 5 years?

Question 2

What tax treatment is applicable for lump sum death benefits paid to a beneficiary?

Question 3

What does a vesting schedule in a qualified plan determine?

Question 4

How are dividends from a personal life insurance policy treated for tax purposes?

Question 5

Which condition would typically allow penalty-free early withdrawals from a qualified plan?

Question 6

What happens if an individual makes an early withdrawal (before age 59½) from a qualified retirement plan?

Question 7

Which plan allows contributions up to 25% of earned income for self-employed individuals?

Question 8

If a life insurance policy is transferred within 3 years before the insured's death, what tax rule applies?

Question 9

Which type of plan is specifically designed for non-profit organizations such as schools and churches?

Question 10

Which type of contribution is tax-deductible: pre-tax dollars or post-tax dollars?

Question 11

What kind of plan has no mandatory withdrawal age of 72?

Question 12

What is the taxation treatment for employer contributions to a qualified plan?

Question 13

What kind of plan is designed for businesses with fewer than 100 employees?

Question 14

What is a key benefit of a 401k plan?

Question 15

Under what conditions are policy loans from a personal life insurance policy considered taxable income?