Disbursement Rules For Annuities! Trivia

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| By Frank07171983
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Frank07171983
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Quizzes Created: 2 | Total Attempts: 746
| Attempts: 680 | Questions: 16
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1. If the annuitant passes away the spouse can take over ownership on the policy only if the spouse is listed as the sole primary beneficiary on the policy. What department would handle this process?

Explanation

The spousal continuation can be done when the annuitant passes away the spouse can take over ownership of the policy only if the spouse is listed as the sole primary beneficiary on the policy. This whole process is handled through the claims department.

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Disbursement Rules For Annuities! Trivia - Quiz

Quiz: disbursement rules for annuities! Disbursement rules for annuities are put in place to ensure that someone is not shortchanged when it comes to getting your money. It... see moreis therefore important that one check what each type of annuity offers on maturity either you risk to lose your money or gain more. Either you will be paid in lump sum or in bits. Take the quiz and see what you know about the techniques through which annuities are paid. see less

2. Systematic withdrawals can be started or stopped at any time, subject to policy provisions and IRS regulations. This is also true with annuitized policies.

Explanation

Systematic withdrawals can be started or stopped at any time, subject to policy provisions and IRS regulations. This is unlike annuitized policies as you cannot stop payments once the first payout has begun.

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3. ____________ is the IRS form with which individual reports his or her distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts and/or pensions.

Explanation

1099 R is Ithe IRS form with which individual reports his or her distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts and/or pensions.

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4. If the RMD letter is not sent back to set up initial RMD when will the annual default check be sent?

Explanation

The default for RMD is to send an annual check on November 1st each year.

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5. _______________ is the amount that Traditional, SEP and SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1 following the year they reach age 70.5.

Explanation

RMD is the amount that Traditional, SEP, and SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1 following the year they reach age 70.5.

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6. Box 1 of the 1099 R is for the total gross distributions.

Explanation

Box 1 of the 1099 R is where the insured will be able to see the gross distributions.

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7. On an FDPA, there is an 8-year surrender charge period. At the start of the 8th year, there is no surrender charge.

Explanation

On an FPDA there is an 8-year surrender charge period and grades down to 0% starting in year 9 and going forward.

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8. When is the RMD letter sent on existing policies?

Explanation

Notification is sent by January 31st of the current year to all policy owners who will attain age 70 ½ by December 31st of the current year.

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9. What is the Supplementary Contract Request Form number?

Explanation

EFL-930 is the Supplementary Contract Request Form.

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10. Joint and survivor life income benefits with ____% continuing to the survivor.

Explanation

payments will be made as long as either the annuitant or the joint annuitant is alive. upon the death of either annuitant, payments will continue at the specified percent of the original amount. payments continue for the lifetime of the survivor.

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11. Check all the ways that we will waive full surrender charges.

Explanation

We will waive full surrender charges if the annuity is annuitized by the owner after one year and for a minimum 10-year payout.

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12. You can take systematic payments of a fixed amount even if you are in the surrender charge period.

Explanation

You can only take systematic withdrawals after you are out of the surrender charge period.

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13. The insured will get an RMD withholding reminder each year to give them an option to change the federal withholding election.

Explanation

Not only will the insured get an initial RMD notice to set it up, but they will also get an annual withholding reminder for RMD. This letter simply states that it is their right to change the federal withholding election.

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14. Only the interest credited before the date you make the request for Interest Only withdrawals is available for systematic withdrawal.

Explanation

Only the interest credited after the date you make the request is available for systematic withdrawal.

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15. If the insured is taking Interest Only withdrawals in the surrender period they cannot also take a 10% preferred withdrawal.

Explanation

If the insured is taking Interest Only withdrawals in the surrender period they cannot also take a 10% preferred withdrawal.

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16. Joint and survivor life income benefits with ____ years guarantee (specificity between 10 and 30 years) and  ____% continuing to the survivor.

Explanation

payments will be made for the specified guaranteed period and for as long thereafter as either the annuitant or the joint annuitant is alive. following the guaranteed period, payments will continue at the original amount as long as both the annuitant and the joint annuitant are alive. if only one annuitant is alive at the end of the guaranteed period or upon the death of either annuitant after the guaranteed period, payments will continue at the specified percent of the original amount. payments continue for the lifetime of the survivor.

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If the annuitant passes away the spouse can take over ownership on the...
Systematic withdrawals can be started or stopped at any time, subject...
____________ is the IRS form with which individual reports his or her...
If the RMD letter is not sent back to set up initial RMD when will the...
_______________ is the amount that Traditional, SEP and SIMPLE...
Box 1 of the 1099 R is for the total gross distributions.
On an FDPA, there is an 8-year surrender charge period. At the start...
When is the RMD letter sent on existing policies?
What is the Supplementary Contract Request Form number?
Joint and survivor life income benefits with ____% continuing to the...
Check all the ways that we will waive full surrender charges.
You can take systematic payments of a fixed amount even if you are in...
The insured will get an RMD withholding reminder each year to give...
Only the interest credited before the date you make the request...
If the insured is taking Interest Only withdrawals in the surrender...
Joint and survivor life income benefits with ____ years guarantee...
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