Finra Series-6 Exam - Topic 6 Question 96 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 96
Topic #: 6

Which of the following plans does not have the requirement that its participants must begin withdrawing funds from the plan by April 1st of the year after they turn 70 ?

i. SIMPLE IRA II. 401(k)

iii. Roth IRA

IV. profit-sharing plan

AI and III only

BI, III and IV only

CIII only

DAll of the above have a mandatory distribution requirement.

Show Suggested Answer

Suggested Answer: D

Upon receiving a complaint about one of its member firms, FINRA may require any person associated with the member firm to provide information and to testify under oath; it may inspect and copy the books, records, and accounts of the member firm; and it may share information obtained from its investigation of a member firm with a foreign regulatory agency. The foreign regulator must agree to treat the information confidentiality, and the agreement with the foreign regulator is predicated on two requirements: ''(A) the other regulator party to the agreement must have jurisdiction over common regulatory matters; and (B) the agreement must require the other regulator to reciprocate and share with FINRA information of regulatory interest or concern to FINRA.''

by Salena at Jan 24, 2025, 08:52 PM

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Kimberely

6 months ago

Profit-sharing plans can also skip the mandatory withdrawals.

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Cordell

6 months ago

I thought all plans had that rule.

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Jamal

6 months ago

Wait, are you sure about that?

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Leah

7 months ago

Totally agree, Roths are flexible!

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Royal

7 months ago

Roth IRAs don't require withdrawals at 70.

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Luke

7 months ago

I’m leaning towards option C, since I know Roth IRAs don’t require withdrawals at 70, but I’m not confident about the others.

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Rolland

7 months ago

I’m pretty certain that SIMPLE IRAs do have mandatory distributions, but I’m confused about the 401(k) and profit-sharing plan.

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Albert

7 months ago

I feel like we practiced a question similar to this, and I think the profit-sharing plan might also not have that requirement.

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Annette

7 months ago

I think I remember that Roth IRAs don’t have the same withdrawal requirements as traditional accounts, but I’m not completely sure.

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Anika

7 months ago

Hmm, I think the Roth IRA is the answer here. From what I remember, it's the only one on the list that doesn't require mandatory distributions starting at age 70 1/2. But I'll double-check to be sure.

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Erick

7 months ago

I'm a little confused on the differences between these retirement plans. I'll need to review the key features of each one to determine which one doesn't have the 70 1/2 withdrawal rule.

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Bethanie

7 months ago

I've got this! The Roth IRA is the only one on the list that doesn't have the mandatory withdrawal requirement by age 70 1/2. The other plans all have that rule.

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Cristal

8 months ago

Okay, let me think this through. The Roth IRA is definitely exempt from that rule, so that's one option. But I'm not sure about the others - I'll have to double-check the specifics.

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Narcisa

8 months ago

Hmm, this is a tricky one. I'll need to carefully review the details of each plan to determine which one doesn't have the 70 1/2 withdrawal requirement.

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