Crpc Study Guide Questions And Correct Answers

Medicare Coverage gap Part D {Ans: AKA donut hole - coverage gap for prescriptions drugs; occurs after the retiree and medicare have paid a certain amount}Benefits of: 1) downsize 2) refinance 3) reverse mort {Ans: 1) may be able to avoid having mortgage and may generate excess cash; may reduce bills 2) lower your monthly payment and may be able to "cash out" some of your equity 3) Receive cash in form of monthly payment, lump sum, or line of credit, and will not be required to repay it until death or sale of home}penalty on withdrawal from roth ira after roth conversion but before roth has been established for 5 years {Ans: 10% penalty}September 30 of the year following the participant's death. {Ans: Net unrealized appreciation}Shirley and Jim Smitten are married and file their taxes jointly. Their modified AGI is $197,000. Jim makes contributions to the 401(k) plan at work. Shirley's employer offers no such plan. However, she plans to contribute to her Roth IRA, and Jim has told you he will contribute to his traditional IRA. They've asked for your help in analyzing their situation— specifically, can they make a contribution to the Roth