Which of the following statements regarding annuities is NOT true?
A) If a beneficiary has not been named, the death benefit is paid to the owner's estate.
B) A 10% penalty on taxable earnings is levied if withdrawals are taken prior to age 70½.
C) Annuities may be used to liquidate an estate.
D) The annuitant receives the checks in the annuitization period.
Answer: B) A 10% penalty on taxable earnings is levied if withdrawals are taken prior to age 70½.
You might also like to view...
Which of the following is not a necessary element in the formation of a contract:
A: Offer; B: Acceptance; C: Consideration; D: Performance.
Within the context of preparing formal reports and proposals, the term limitations refers to
A) the boundaries of your proposal, what you can and can't do. B) excuses for inadequate research or a poorly written report. C) factors beyond your control that have affected the report's outcome. D) the risks and rewards of a specific course of action. E) the costs and benefits of a specific course of action.