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Finra Series-6 Exam - Topic 5 Question 52 Discussion

Which of the following statements about non-qualified employer-sponsored retirement plans is false?
B) The earnings on the plan's contributions remain untaxed until they are withdrawn.
A) An employer does not have to offer the plan to all employees over 21 years old.
C) The plan does not have to abide by ERISA's vesting requirements.
D) The plan may be either funded or unfunded.

Finra Series-6 Exam - 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?

Show Suggested Answer Hide 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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Maryann
10 months ago
D sounds right, they can be funded or unfunded for sure!
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Brande
10 months ago
C is spot on, non-qualified plans don’t have to follow ERISA.
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Fannie
10 months ago
Wait, are you sure about B? I thought all earnings were taxed eventually.
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Caitlin
11 months ago
Totally agree, A is definitely correct!
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Rebbecca
11 months ago
A is true, employers can pick and choose.
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Alesia
11 months ago
I’m leaning towards D being the false statement, but I can’t recall if unfunded plans are really allowed. It’s confusing!
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Dominga
11 months ago
I practiced a similar question last week, and I remember that non-qualified plans don't have to follow ERISA rules, so C seems like it could be true.
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Tyisha
11 months ago
I'm not entirely sure, but I feel like B could be tricky since it talks about tax treatment, which is usually a key point in these questions.
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Emeline
11 months ago
I think the answer might be A because I remember something about employers having flexibility in who they offer plans to.
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Chandra
11 months ago
I'm a bit unsure about this one. I'll need to review my notes on the total cost concept and make sure I understand which logistics costs are relevant.
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Garry
11 months ago
I think accommodating special requirements in inpatient care isn't a primary focus of utilization reviews, but I might be mixing it up with other guidelines.
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Iesha
11 months ago
Okay, let's think this through step-by-step. The prescription is for Vicodin HP, which contains 10mg of Hydrocodone and 660mg of APAP. The script says 1 TAB QID PRN X10D, which means 1 tablet 4 times a day as needed for 10 days. So we need to calculate the total amount of Hydrocodone in the order.
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Quentin
1 year ago
I'm so hungry, I could eat a horse... or at least a non-qualified retirement plan. Wait, what was the question again?
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Nelida
1 year ago
Haha, I bet the person who wrote this question was really trying to trip us up. I'm betting on D as the false one.
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Luisa
1 year ago
Ah, tricky question! I'm going to go with A as the false one. I think non-qualified plans can discriminate more on who they cover.
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Rashida
1 year ago
I'm pretty confident it's B, the tax treatment is different for non-qualified plans.
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Elizabeth
1 year ago
I'm leaning towards D, I remember something about funding options.
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Nikita
1 year ago
I think it might be C, I'm not sure about the vesting requirements.
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Cammy
1 year ago
I agree with you, A seems like the false statement.
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Carmen
1 year ago
Hmm, I thought all employer-sponsored retirement plans had to follow ERISA, so I'm going with C as the false statement.
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Elmer
1 year ago
I'm pretty sure the correct answer is B. The earnings on non-qualified plans are taxed, unlike qualified plans.
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Denny
1 year ago
User 3: I'm pretty sure the correct answer is B. The earnings on non-qualified plans are taxed, unlike qualified plans.
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Mari
1 year ago
User 2: I disagree, I believe the correct answer is D. Non-qualified plans can be either funded or unfunded.
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Chantay
1 year ago
User 1: I think the correct answer is C. Non-qualified plans still have to follow ERISA's vesting requirements.
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Clay
1 year ago
I disagree, I think the false statement is A because employers do have to offer the plan to all employees over 21 years old.
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Juliann
1 year ago
I agree with Willow, C is false because non-qualified plans still have to follow ERISA's vesting requirements.
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Willow
1 year ago
I think the false statement is C.
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