Series 7 Exam Question 352: Answer and Explanation

Question: 352

IRAs may be set up in all the following ways EXCEPT

• A. single life
• B. life with period certain
• C. joint and last survivor
• D. uniform lifetime

Correct Answer: B

Explanation:

B. IRAs may be set up as single life, joint and last survivor, or uniform lifetime. Life with period certain is a way to set up payout for an annuity, not an IRA. Single life is when the owner is the beneficiary of the account. Joint and last survivor is when the sole beneficiary of the account is a spouse who is more than ten years younger than the owner. Uniform lifetime is when the spouse is not the sole beneficiary or the spouse is not more than ten years younger than the owner.