At the Time of His Death, Jason Was a Participant

question 54

Multiple Choice

At the time of his death, Jason was a participant in Silver Corporation's qualified pension plan and group term life insurance. The balance of the survivorship feature in his pension plan is that: $\begin{array}{ll}\text { Contributions by Silver } & \$ 800,000 \\\text { After-tax contributions by Jason } & 400,000 \\\text { Plan earnings } & 300,000\end{array}$ The term insurance has a maturity value of $100,000. All amounts are paid to Pam, Jason's daughter. One result of these transactions is:

• A) Pam must pay income tax on $300,000.
• B) Pam must pay income tax on $1,100,000.
• C) Jason's gross estate must include $1,200,000.
• D) Jason's gross estate must include $1,500,000.

---

Definitions:

Faulty Expectations

Incorrect or unrealistic beliefs about likely outcomes or events in the future.

Faulty "Tapes"

An analogy for negative self-talk or beliefs that are ingrained in one's thought patterns, often contributing to psychological distress.

Faulty Response

An incorrect or inappropriate reaction or answer given in response to a question, situation, or stimulus.

Direct Coping

A method of dealing with stress by tackling problems head-on and attempting to solve them directly.