Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

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At what age did Joan withdraw from her qualified annuity?

The correct answer is: 64

To determine the correct answer regarding at what age Joan withdrew from her qualified annuity, it's important to understand the rules governing qualified annuities. Typically, qualified annuities are linked to tax-deferred retirement plans, and one of the key features is the requirement that individuals must reach a certain age before they can make penalty-free withdrawals. In many cases, that age is often set at 59½. However, individuals can begin to take distributions from their qualified annuity without facing penalties once they reach 59½, which generally extends to the ages provided in the answer choices. If Joan withdrew at 64, it indicates she was over the common age threshold for penalty-free withdrawals, allowing her to take distributions without incurring additional penalties. This age aligns with the standard practices of individuals seeking to retire comfortably while managing their retirement funds accordingly. Hence, the choice of 64 as the age at which Joan withdrew from her qualified annuity correctly reflects a common strategy utilized by retirees when accessing their retirement funds.