Finra Exam Series-6 Topic 5 Question 52 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 52
Topic #: 5

[All Series-6 Questions]

Which of the following statements about non-qualified employer-sponsored retirement plans is false?

AAn employer does not have to offer the plan to all employees over 21 years old.

BThe earnings on the plan's contributions remain untaxed until they are withdrawn.

CThe plan does not have to abide by ERISA's vesting requirements.

DThe plan may be either funded or unfunded.

Show Suggested Answer

Suggested Answer: B

The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.

by Annabelle at Dec 11, 2022, 06:23 AM

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Willow

8 hours ago

I think the false statement is C.

upvoted 0 times

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