FASEA Superannuation and Retirement Planning 3

Question 1

A client aged 75 receives an account-based pension. What is the minimum annual drawdown percentage they must withdraw?

Accepted Answer

5%

Answer

4%

Answer

6%

Answer

7%

Question 2

Which of the following best describes the 'total super balance' concept and its relevance to a client's superannuation strategy?

Accepted Answer

It is the sum of all superannuation interests and affects eligibility for non-concessional contributions and carry-forward concessional contributions

Answer

It measures only the client's accumulation phase balance and affects contribution tax rates

Answer

It counts only retirement phase balances and determines pension drawdown rates

Answer

It is the ATO's estimate of final retirement savings and determines Age Pension eligibility

Question 3

A 63-year-old client has permanently retired and commences an account-based pension. How are pension payments taxed in the hands of the client?

Accepted Answer

Tax-free because the client is over 60

Answer

Taxed at marginal rates with a 15% tax offset

Answer

Taxed at 15% flat rate regardless of age

Answer

Subject to a 10% superannuation tax surcharge

Question 4

Under the downsizer contribution rules, which of the following clients is eligible to make a downsizer contribution?

Accepted Answer

A 55-year-old who sells their main residence held for 12 years

Answer

A 50-year-old who sells an investment property held for 9 years

Answer

A 60-year-old who sells shares and uses proceeds to buy a smaller home

Answer

A 55-year-old who sells a residential property owned jointly for less than 10 years

Question 5

When a financial adviser recommends an SMSF to a client, which of the following considerations is MOST critical from a best interests duty perspective?

Accepted Answer

Whether the SMSF's costs, control benefits, and investment options are appropriate for the client's specific circumstances and balance

Answer

Whether the client's employer offers an SMSF option in their default plan

Answer

Whether the client prefers to manage their own investments regardless of cost

Answer

Whether the client's accountant recommends establishing an SMSF

Question 6

What is the carry-forward concessional contributions rule and who is eligible to use it?

Accepted Answer

Members with a TSB below $500,000 can carry forward unused concessional cap amounts from up to five prior years

Answer

Members with a TSB above $500,000 can carry forward unused NCC cap amounts for up to five years

Answer

All members can carry forward unused concessional cap amounts indefinitely regardless of balance

Answer

Members over age 65 can carry forward unused concessional amounts for two years only

Question 7

A client asks about nominating a binding death benefit nomination (BDBN) for their superannuation. Which statement is accurate?

Accepted Answer

A BDBN lapses after three years unless it is a non-lapsing nomination accepted by the fund

Answer

A BDBN is automatically valid indefinitely once made and cannot be revoked

Answer

A BDBN must direct benefits to the estate and cannot name dependants directly

Answer

A BDBN is only available to SMSF members and not retail or industry fund members