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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?

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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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Quentin
2 months 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
2 months 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
2 months 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 months ago
I'm pretty confident it's B, the tax treatment is different for non-qualified plans.
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Elizabeth
2 months ago
I'm leaning towards D, I remember something about funding options.
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Nikita
2 months ago
I think it might be C, I'm not sure about the vesting requirements.
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Cammy
2 months ago
I agree with you, A seems like the false statement.
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Carmen
2 months 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
2 months 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
2 months 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
2 months 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
2 months 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
3 months 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
3 months 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
3 months ago
I think the false statement is C.
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