Ira Quiz
Use the handbook and the current rate sheet to complete this quiz.
- 1.
What are the three IRA types that we can work with in the branches?
- A.
CUTTMA, ROTH, TRADITIONAL
- B.
SEP, ROTH, TRADITIONAL
- C.
CUTTMA, TRADITIONAL, SEP
- D.
None of the above
Correct Answer
B. SEP, ROTH, TRADITIONAL -
- 2.
Out of the IRA's that we work with, which are the most common?
- A.
Roth
- B.
Traditional
- C.
SEP
- D.
Both A and C
- E.
Both A and B
Correct Answer
E. Both A and B -
- 3.
What is the main difference between the Traditional and Roth IRA'S?
- A.
Tax deductibility
- B.
NCUA or FDIC insurability
- C.
Investment options
- D.
There is no difference
Correct Answer
A. Tax deductibility -
- 4.
Which of the following is true of Roth IRA's?
- A.
It may be tax deductible.
- B.
You can deposit up to $15,000 per year.
- C.
It can be transferred to another adult or employee at any time.
- D.
It is not tax deductible.
Correct Answer
D. It is not tax deductible. -
- 5.
What does IRA stand for?
- A.
Internal Revenue Association
- B.
Individual Retirement Account
- C.
Individual Recovery Assessment
- D.
Internal Retirement Account
Correct Answer
B. Individual Retirement Account -
- 6.
What is an advantage of having a Roth IRA?
- A.
You may withdraw contributions tax and penalty free.
- B.
You may deduct your earnings on your income tax.
- C.
You are only required to withdraw half of your account at age 59 1/2.
- D.
There are no real advantages of having a Roth IRA.
Correct Answer
A. You may withdraw contributions tax and penalty free. -
- 7.
Should we advise our members about their own personal tax deductibility at any time?
- A.
If we have attended a tax class we are able to advise members.
- B.
We are allowed to advise if a member asks.
- C.
If they are getting their taxes done at H&R Block we can advise them.
- D.
We are never to advise a member about their own tax deductibility.
Correct Answer
D. We are never to advise a member about their own tax deductibility. -
- 8.
We are NEVER to tell our members about their personal tax deductibility. So if a member asks you, what would be the most appropriate response?
- A.
"We can't tell you anything, sorry."
- B.
"Well, I know that Mr. Smith came in last week and said that his was tax deductible, so your's could be too."
- C.
"Most people find that their Traditional IRA is tax deductible. However, to be sure, you should always speak with your tax advisor regarding your personal tax situation."
Correct Answer
C. "Most people find that their Traditional IRA is tax deductible. However, to be sure, you should always speak with your tax advisor regarding your personal tax situation." -
- 9.
What types of IRA transactions can be done on the teller line?
- A.
Balance inquiries only.
- B.
Inquiries, deposits, and withdrawals.
- C.
Inquiries and deposits.
- D.
None of the above.
Correct Answer
C. Inquiries and deposits. -
- 10.
What is the cutoff date for IRA deposits for the previous year?
- A.
April 15th
- B.
April 1st
- C.
May 1st
- D.
March 19th (my birthday...)
Correct Answer
A. April 15th -
- 11.
Joseph is 53 and still working. His tax advisor instructed him to make a maximum contribution to his IRA for 2010. He is able to deposit up to $6,000 into his IRA at this time.
- A.
True
- B.
False
Correct Answer
A. True -
- 12.
Who is the Roth IRA named after?
- A.
David Lee Roth
- B.
Eddie Van Halen
- C.
President Obama
- D.
Senator William Roth
Correct Answer
D. Senator William Roth -
- 13.
Who sets the MAGI limits?
- A.
Congress
- B.
The President
- C.
SAFE
- D.
NCUA
Correct Answer
A. Congress -
- 14.
A member must choose to either have a Traditional IRA or a Roth IRA. They cannot choose to have both at the same time.
- A.
True
- B.
False
Correct Answer
B. False -
- 15.
We, as employees, have more knowledge than the members do about IRA's. So we are able to guide them to the one that we think would best suit them.
- A.
True
- B.
False
Correct Answer
B. False -
- 16.
If a member is unsure about which type of IRA they should have, who should they ask for advice?
- A.
Suzy Orman
- B.
A SAFE Representative
- C.
Their parents
- D.
A tax advisor
Correct Answer
D. A tax advisor -
- 17.
Upon the member's death, what happens to an IRA?
- A.
All monies are forfeited and turned over to the Credit Union.
- B.
The IRA funds get distributed between the beneficiaries, and/or the spouse may assume the account.
- C.
The account is escheated to the State of California.
- D.
The branch staff of assignment gets to split the cash.
Correct Answer
B. The IRA funds get distributed between the beneficiaries, and/or the spouse may assume the account. -
- 18.
Which of the following is true of Traditional IRA's?
- A.
The dividends may be withdrawn at any time without taxes or penalties.
- B.
The contributions and earnings may be tax deductible.
- C.
It can be transferred to a child who would like to attend school.
- D.
You can only have a Traditional IRA invested in a certificate.
Correct Answer
B. The contributions and earnings may be tax deductible. -
- 19.
What year was it written into law that each eligible person can set aside tax-sheltered funds for his or her retirement? Thus creating the IRA idea?
- A.
1974
- B.
1981
- C.
2001
- D.
300 bc
Correct Answer
A. 1974 -
- 20.
An IRA cannot be in a Trust.
- A.
True
- B.
False
Correct Answer
A. True -
- 21.
A spouse can be a joint owner on their husband's or wife's IRA.
- A.
True
- B.
False
Correct Answer
B. False -
- 22.
At what age must all contributions stop for Traditional IRA's?
- A.
59 1/2
- B.
69 1/2
- C.
70 1/2
- D.
There is no cutoff age.
Correct Answer
C. 70 1/2 -
- 23.
Why must all contributions stop at age 70 1/2?
- A.
Because nobody works after age 70.
- B.
Because the elderly sometimes forget where their money is.
- C.
Because they will have already used up their money and will not have anything to contribute.
- D.
Because the member must begin to take withdrawals at that age.
Correct Answer
D. Because the member must begin to take withdrawals at that age. -
- 24.
What is a conduit IRA?
- A.
An IRA for people who work in Construction.
- B.
An IRA specifically for accepting monies from a QRP.
- C.
Something you I made up.
Correct Answer
B. An IRA specifically for accepting monies from a QRP. -
- 25.
What does QRP stand for?
- A.
Qualified Retirement Plan
- B.
Quick Rest Plan
- C.
Quality Record Phone
- D.
Quest Royal Plan
Correct Answer
A. Qualified Retirement Plan -
- 26.
A retirment plan (401k) from a former employer is an example of a type of QRP.
- A.
True
- B.
False
Correct Answer
A. True -
- 27.
What dividend rate would Joseph earn on his new $6,000 IRA certificate for 3 years?
- A.
.45%
- B.
1.85%
- C.
1.25%
Correct Answer
C. 1.25% -
- 28.
What investment options do we offer for members who would like to open IRA accounts?
- A.
Certificates
- B.
Accumulation
- C.
Non NCUA Investments (SFS)
- D.
All of the above.
Correct Answer
D. All of the above. -
- 29.
A member can change their Traditional IRA to a Roth IRA by paying all of the taxes and filing a Recharacterization form.
- A.
True
- B.
False
Correct Answer
A. True -
- 30.
A member does not have to wait for the Grace Period of a certificate to deposit to their IRA.
- A.
True
- B.
False
Correct Answer
B. False -
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Jan 21, 2013Quiz Edited by
ProProfs Editorial Team -
Nov 23, 2010Quiz Created by
Mrandall1981
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