QFA PensionsQFA Pensions

Sample QuestionsSample Questions

The Third Pillar of provision for retirement is: 

A The State Pension SystemB Personal Pension ProvisionC  Occupational Pension SchemesD  Personal savings & investments

Sample Question

Sample Question

Which one of the following is considered to be unearned income?

   A  Income from a part time job

B Rental incomeC Income from a self employed tradeD Income from a self employed occupation 

Which one of the following could be either defined benefit or defined contribution? A  AVCs paid to a PRSAB  AVCs paid to an occupational pension schemeC  A Personal Pension PlanD  A PRSA 

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 Income from a self-employed trade is assessed for Income Tax under: A  Schedule D, Case IB Schedule FC  Schedule ED  Schedule D, Case II  

Sample Question

Which one of the following is NOT subject to self-assessment for income Tax purposes? A  A Proprietary director whose only income is subject of PAYE?B A self employed electricianC Anyone over age 65D An employee (not a director) whose only income is subject to PAYE 

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A taxpayer subject to self-assessment must pay (not using ROS online) preliminary income tax for 2006 by which date?

A 31st October 2005B 31st December 2006C 5th April 2006D 31st October 2006 

Sample Question

Dividends received by an individual from an Irish company are assessed to income tax under:

 A Schedule D, Case IB Schedule FC  Schedule ED  Schedule D, Case II 

Sample Question

What Corporation TAX rate applies in 2006 to the trading profits of companies?

 A  7.5%B 12.5%C 20%D 25% 

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A proprietary director pays PRSI at which class?

A AB BC CD D

Sample Question

Mary has received an inheritance of €600,000 from her Father in September 2006. Earlier in 2006 she received a separate inheritance of €200,000 from her Aunt (i.e. her mother’s sister). Prior to 2006 she had not received any other gift or inheritance from any source.

What inheritance Tax, if any, does Mary have to pay on the inheritance received from her Father?

A €64,369B €120,000C €24,369D Nill 

Sample Question

The State Invalidity Pension can NOT be claimed by:

A Proprietary directorsB Civil Servants recruited after 6th April 1995C  Part time employees in the private sectorD  Full time employees in the private sector

Sample Question

Entitlement to which one of the following State Pensions issubject to a means test?

 A  State Pension (Transition)B State Pension (Contributory)C State Pension (Non Contributory)D State Widows Pension (Contributory)

Sample Question

At what age does the State Pension (Transition) become payable?

 A  65B 66C 67D 70 

Sample Question

John is in pension able employment and contributes 5% pa of his€100,000 pa pensionable earnings to his employer’s pensionscheme.He also has separate self employed net relevant earnings of €250,000 pa.John is aged 48. What is the maximum Personal Pension Plan contribution he can get tax relief on in 2006, assuming he contributes to no other pension arrangement in 2006?

 A €38, 500B €62, 500C €76, 200D €46, 200 

Sample Question

 The benefit payable under a Permanent Health The benefit payable under a Permanent Health

Insurance policy is:Insurance policy is:

A A  Tax FreeTax FreeBB Subject to exit taxSubject to exit taxCC Liable to Income taxLiable to Income taxDD Tax free up to annual limit of €12, 700 paTax free up to annual limit of €12, 700 pa

Sample Question

What is the limit for tax relief on Permanent Health Insurance (PHI) premiums? A 10% pa of incomeB 15% pa of incomeC 15% pa of income, increasing at age 30 and overD 5%   pa of income

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 What is the latest age at which an individual must normally take retirement benefits from a Personal Pension Plan? A 70th birthdayB 75th birthdayC 55th birthdayD 65th birthday

Sample Question

The Proceeds on death of a Section 785 life assurance policy are payable to: A  The deceased’s next of kinB The deceased’s spouseC Trustees of the policyD The deceased’s estate

Sample Question

John is now retiring and drawing on his Personal Pension Plan. The Plan has an accumulated value of €250,000Assuming John is not currently receiving any other pension income, and has not previously invested in an AMRF or annuity, what is the maximum amount John can transfer to an ARF from the proceeds of the Personal Pension Plan. A €62,500B €63, 500C €124,000D €187,500 

Sample Question

What is the maximum guarantee period a pension arising under a Personal Pension Plan can have? A 10 yrsB 5 yrsC 3 yrsD  20 yrs

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