Free SERIES 7 Exam Braindumps (page: 52)

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Distribution from an IRA can begin at age 59½ and must begin by age:

  1. 70½
  2. 65
  3. 68
  4. whenever the individual is retired

Answer(s): A

Explanation:

70½. This the age at which IRA withdrawals are required.



Which of the following are not flat rate taxes?

  1. excise tax
  2. gasoline tax
  3. gift tax
  4. general income tax

Answer(s): C

Explanation:

gift tax. By definition, gift tax is a progressive tax. All of the others are a level percentage.



For a self-employed individual’s retirement plan, ERISA permits an investment in which of the following?

  1. a unit investment trust
  2. a variable annuity
  3. a US Treasury bond
  4. all of the above

Answer(s): D

Explanation:

all of the above. Each of these investments qualify for a retirement plan or an IRA.



An employer profit sharing plan may be described as:

  1. an income tax deduction
  2. a retirement plan
  3. a tax deferral plan
  4. all of the above

Answer(s): D

Explanation:

all of the above. A profit sharing plan has tax deductible contributions and is designed to provide a retirement plan for participants. Income in the plan is tax-free until withdrawn.






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