InvestmentsDonna M. Kesot, CPCU  CPCU 556 Annuities       April 17, 2012
Match the tax section   Section 1031           Mergers   Section 1041         Partnerships   Section 721     Like-Kind Exc...
Step Up in Basis at DeathGifts to charityUse of exclusion provisions in the tax law, e.g. sale of primary home,corp exclus...
Like Kind ExchangesTax free corporate reorganizationsEquity Collars with monetizing the hedged stock, e.g. puts on hedgeds...
The parties to an annuity? •Insurer •Contract Owner: the party who purchases the annuity from the insurer and who makes pr...
A retirement plan that meets the requirements establishedby the IRS for favorable tax treatment
A 403(B) is a qualified retirement plan that foremployees of local, state, or federal governmentsand agencies.      TRUE o...
A retirement savings planBy which an individual can use tax-deductibleAnd tax deferred methodsFor accumulating wealth.
Both tax deductible and tax deferredTax FreeTax deferredCurrently taxable
These plans allow individuals to invest pre-taxand provide tax-deferred earningsTraditional IRA401(k) plans, other than Ro...
Match the tax section   Section 1035         Like-Kind   Section 1036   Emp Stock Option Plan   Section 1042       Life to...
Highly secure, liquid, and convenient investment that pays a fixedrate of interest and can be FDIC insured
• An annuity that is used as a funding vehicle in a  qualified plan, such as an individual retirement  account, a tax-shel...
A Qualified 401(k) plan meets the IRS rules insection 401(k) & participants may choose tocontribute to the plan with befor...
Tax free funding vehicles:           Municipal Bonds           Roth IRAs for qualified distributions            Nonqualifi...
Highly secure, liquid investment that investors commonly use for theliquid portion of their investment portfolios
Relatively safeLiquid investmentSuch as securities issued or guaranteed by the federalgovernment, certificates of deposit,...
Method used to estimate needed retirement income based on apercentage of expected final average earned income.    60-80% b...
Generally, creation of a formal irrevocable trust into which thedonor (as grantor of the trust) places property that is su...
Upcoming SlideShare
Loading in …5
×

Quiz show investments

325 views

Published on

tax, mutuals, general terminology

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
325
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Quiz show investments

  1. 1. InvestmentsDonna M. Kesot, CPCU CPCU 556 Annuities April 17, 2012
  2. 2. Match the tax section Section 1031 Mergers Section 1041 Partnerships Section 721 Like-Kind Exchanges Section 351 Between SpousesDivorce Section 354 Corporations
  3. 3. Step Up in Basis at DeathGifts to charityUse of exclusion provisions in the tax law, e.g. sale of primary home,corp exclusion of up to 50% gain on QUALIFIED small business stockfrom start up
  4. 4. Like Kind ExchangesTax free corporate reorganizationsEquity Collars with monetizing the hedged stock, e.g. puts on hedgedstocks from employee stock options (other examples p. 294) Exchange Funds
  5. 5. The parties to an annuity? •Insurer •Contract Owner: the party who purchases the annuity from the insurer and who makes premium payments. May be the annuitant. •Annuitant: the person insured under the annuity
  6. 6. A retirement plan that meets the requirements establishedby the IRS for favorable tax treatment
  7. 7. A 403(B) is a qualified retirement plan that foremployees of local, state, or federal governmentsand agencies. TRUE or FALSE?Real Answer:A 403(b) PLAN IS A TAX FAVORED RETIREMENT PLAN FOREMPLOYEES OR CERTAIN NONPROFIT ORGANIZATIONS
  8. 8. A retirement savings planBy which an individual can use tax-deductibleAnd tax deferred methodsFor accumulating wealth.
  9. 9. Both tax deductible and tax deferredTax FreeTax deferredCurrently taxable
  10. 10. These plans allow individuals to invest pre-taxand provide tax-deferred earningsTraditional IRA401(k) plans, other than Roth403(b) plans, other than Roth457 deferred compensation plans
  11. 11. Match the tax section Section 1035 Like-Kind Section 1036 Emp Stock Option Plan Section 1042 Life to Annuity Section 351 Corporate Stock Options Section 1031 Corporation Formation
  12. 12. Highly secure, liquid, and convenient investment that pays a fixedrate of interest and can be FDIC insured
  13. 13. • An annuity that is used as a funding vehicle in a qualified plan, such as an individual retirement account, a tax-sheltered annuity, or a 401(k) plan.• 10% tax penalty for early withdrawal (age 70.5)
  14. 14. A Qualified 401(k) plan meets the IRS rules insection 401(k) & participants may choose tocontribute to the plan with before-tax dollars
  15. 15. Tax free funding vehicles: Municipal Bonds Roth IRAs for qualified distributions Nonqualified Annuity A & B only A, B & CRight Answer: Tax free funding vehicles are (d) A& B. Muni’s and Roth IRAs for qualified distributions
  16. 16. Highly secure, liquid investment that investors commonly use for theliquid portion of their investment portfolios
  17. 17. Relatively safeLiquid investmentSuch as securities issued or guaranteed by the federalgovernment, certificates of deposit, banker’s acceptances,euro dollars, and commercial paper
  18. 18. Method used to estimate needed retirement income based on apercentage of expected final average earned income. 60-80% because 1. Taxes usually decline 2. Certain work related expenses may end or reduce 3. Home-ownership expenses may decline if mortgage debt is eliminated 4. Support for dependent children may have ended 5. Senior discounts (Go AARP) 6. General expenses may decline as the aging individual become less active/more sedentary
  19. 19. Generally, creation of a formal irrevocable trust into which thedonor (as grantor of the trust) places property that is subject to thetrust Aka CRT 2 types: 1. CRUT Charitable Remainder Unitrust 2. CRAT Charitable Remainder Annuity Trust

×