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Retirement & Estate Planning Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. What is the COLA if last year's 3rd quarter amount was 253 and this year's is 249?

Question 2 2. What is a key difference between pension plans and 401(k) plans?

Question 3 3. The Social Security Act was enacted in which year?

Question 4 4. FICA contributions go to a particular federal government account called the _____.

Question 5 5. Alex wants to retire but is not vested. Why is this a bad idea?

Page 2

Question 6 6. What type of pension plan guarantees that the employee will receive a particular amount of benefit once he or she retires, even if the employer's investments don't do well?

Question 7 7. What is the relationship between CPI-W and COLA?

Question 8 8. Justin makes $1000 per paycheck. He has a 401(k) plan and his employer has a 3% matching program. Justin decides he'd like to be more aggressive with his contributions, so he decides he's going to contribute 5% per paycheck. How much does this mean his employer will contribute per paycheck?

Question 9 9. In December 2013, there was a COLA of 1.5%. When was it effective for benefits paid?

Question 10 10. In what year did President Nixon sign into law automatic COLAs based on the change in the consumer price index?

Page 3

Question 11 11. Which type of retirement benefit plan allows employees to contribute with money that's already been taxed?

Question 12 12. What is the Cost of Living Adjustment?

Question 13 13. What does FICA stand for?

Question 14 14. The Social Security Act was just one of many pieces of legislation enacted in an attempt to ease difficulties during the Great Depression. These acts were collectively known as which of the following?

Question 15 15. Let's say that $5.00 is deducted from Amy's paycheck each pay period for FICA taxes. How much money is Amy's employer required to pay on her behalf in FICA taxes?

Retirement & Estate Planning Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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