Tag: FINRA

Solomon Series 82 Study Guide, 5th Edition, Now Available

The updated 5th edition of the Solomon Series 82 Study Guide covers everything you need to know to pass the FINRA Series 82 exam. Continue reading

If you work at a FINRA member firm and want to become a registered representative, you’ll need to pass a job-specific FINRA licensing exam. One such exam is the Private Securities Offerings Representative Exam, also known as the Series 82. The Series 82 exam is half the length it once was (50 questions instead of 100), but it hasn’t become much easier. How should you prepare for the exam?

Solomon Exam Prep is delighted to release the 5th edition of “The Solomon Exam Prep Guide: Series 82 FINRA Private Securities Offerings Representative Exam.” With this updated version of the Study Guide, professionals who want to become a registered Private Securities Offerings Representative can learn the content they need to know to pass the Series 82 exam. Passing the Series 82, along with the co-requisite Securities Industry Essentials (SIE) Exam, qualifies an individual for the sale of private placement securities as part of a primary offering.

About the Series 82 Exam

The Series 82 is a fairly difficult exam that requires candidates to study a wide range of securities, regulations, and market information. Exam topics are divided into four sections:

    • Section 1: Seeks Business for the Broker-Dealer from Customers and Potential Customers
    • Section 2: Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives
    • Section 3: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records
    • Section 4: Obtains and Verifies Customers’ Purchase Instructions and Agreements; Processes, Completes and Confirms Transactions

To help prepare candidates for this challenging exam, the Solomon Series 82 Study Guide is continually kept up to date to reflect current rules and regulations, and it covers all key exam topics. Charts, graphs, and practice questions throughout the text support learners in understanding and applying important concepts.

“The rules are a big part of the Series 82, but becoming registered as a Private Securities Offerings Representative is about more than learning to play by the rules – it means you are expected to be competent. That’s why passing the Series 82 requires mastering a wide range of knowledge. The Series 82 is a high bar, but once you’ve hurdled it, you’ll be a knowledgeable private securities industry professional.”
Jeremy Solomon
Solomon Exam Prep President and Co-founder

What changes with this new edition?

The core content of the Series 82 Study Guide remains the same, but some important changes include:

    • Expanded and updated discussion of Regulation D private placements, including the SEC’s new definition of accredited investors
    • A new section with extensive coverage of Regulation Best Interest and the new suitability requirements it imposes on BDs
    • Information about the SEC’s new, higher exempt offering dollar caps
    • Added discussion of the SEC’s new Rule 152, which has a major impact on how exempt offerings retain their exempt status
    • Updated and expanded explanation of crowdfunding
    • Updated and expanded coverage of using finders to identify potential investors
    • Revamped discussion of member private offerings rules
    • Additional coverage of gifts and charitable donations
    • Information about the SEC’s fair disclosure rules

Content updates for this new edition are also reflected in the Solomon Series 82 Exam Simulator. The online Exam Simulator complements the Study Guide with over 1,700 practice questions for the Series 82. Hone, track, and assess your knowledge by taking unlimited chapter quizzes and full exams to practice what you’ve learned.

“I took the Series 82 just four weeks after passing the SIE. I followed the study plan, took tons of the great practice tests, got great advice from Karen [Solomon Co-founder & Content Director], and everything worked out well. It was literally the perfect test prep experience... 100% rating. Thank you, Solomon!”
Jonathan Roth
DAK Capital / DAK Group, Rochelle Park, NJ

Series 82 Study Materials

The Series 82 Study Guide is available as a digital subscription with a hardcopy upgrade option. You can purchase the Study Guide individually or in a package with supporting Series 82 study products. Customers also have access to free tools and resources, including a study schedule in digital and pdf formats, which helps you master the exam material with maximum efficiency.

To learn more about Solomon Exam Prep’s Series 82 study materials, including Study Guide, Exam Simulator, Audiobook, Video Lecture, and Flashcards, visit the Solomon Series 82 product page.

Series 82 Exam Practice Questions

Test your Series 82 knowledge! The questions below come from Solomon’s industry-leading Exam Simulator:

1. A Regulation A (also called Regulation A+) offering is for a maximum amount of securities of:

    1. $75 million or less during a 6-month period
    2. $75 million or less during a 12-month period
    3. $10 million or less during a 12-month period
    4. $10 million or less during a 6-month period

2. What is the equivalent taxable yield of a 6.5% municipal bond if the investor’s tax bracket is 25%?

    1. 18.5%
    2. 8.67%
    3. 6.5%
    4. 4.88%

3. According to Regulation D, which of the following are NOT considered “accredited investors?”

    1. A married couple with an annual joint earned income of $250,000 for two years
    2. An individual with an annual earned income of $250,000 for each of the last two years
    3. An individual with a net worth of $1,500,000, not counting his or her home
    4. All are considered

Answers: 1) B.   2) B.   3) A.

For more Series 82 practice questions and to try out the Solomon Exam Simulator, take Solomon’s free Series 82 Sample Quiz!

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Solomon Partners with State College of Florida to Offer SIE Exam Prep Course

Solomon Exam Prep’s SIE study program is available as an on-demand course via State College of Florida’s Lifelong Learning and Workforce Development Division. Continue reading

Solomon Exam Prep is excited to be partnering with the State College of Florida (SCF) to offer an online SIE Exam Prep course through SCF’s Lifelong Learning and Workforce Development Division. The self-paced, non-credit course will prepare students to sit for the FINRA Securities Industry Essentials (SIE) Exam.

The SIE Exam Prep course is for anyone who is curious about the world of finance and investing, or who might be interested in a career in the field. The FINRA SIE Exam tests general knowledge of the securities industry and is the foundational requirement for many careers, including stockbroker, financial advisor, investment banker, and more. A passing score on the SIE Exam is valid for your years, and having it on your resume can open doors to jobs in the finance and securities industries.

“Solomon Exam Prep is thrilled to be working with the State College of Florida to help SCF students pass the FINRA SIE exam and other securities licensing exams.”

Jeremy Solomon, President & Co-founder of Solomon Exam Prep

What does the course include?

Course registration includes 180-day access to the Solomon SIE Total Study Package, which contains the following digital study materials:

    • Study Guide
    • Exam Simulator
    • Audiobook
    • Video Lecture
    • Flashcards

The Solomon SIE Total Study Package also comes with helpful resources and tools, including Solomon SIE Study Schedules, up to twenty Ask the Professor questions, and Pass Probability™, an AI technology that predicts exam readiness.

About the State College of Florida

Established in 1957, State College of Florida, Manatee-Sarasota (SCF) is the region’s first and largest public college, serving 11,000 college credit students annually at three campuses and via online classes. Another 14,000 participants annually take professional development and personal enrichment classes through SCF’s Lifelong Learning and Workforce Development Division, which offers year-round non-credit courses both in person and online.

Interested in partnering with Solomon?

Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Solomon can tailor its SIE curriculum to fit any course, including credit and non-credit courses, as part of a current course such as Finance or Capital Markets, or as a self-study program. The Solomon platform works equally well for in-person, hybrid, and online courses.

Join institutions such as State College of Florida, Elon University, Florida Memorial University, Pepperdine University, the University of North Carolina at Pembroke, Claflin University, University of Delaware, Adelphi University, University of Nebraska-Omaha, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.

To learn more about the ways colleges and universities can partner with Solomon, contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.

Learn More About SIE Exam Prep

Mask Policy Change at Prometric Test Centers

Prometric will no longer require test candidates and test center staff to wear masks at test centers, effective May 1, 2022. Continue reading

Prometric, the testing vendor for several securities licensing exams, has announced a change to one of its COVID-19-related policies. Beginning May 1, 2022, Prometric will no longer require people to wear masks at its testing centers, unless required to do so by building management or local government mandates.

This policy change applies to both candidates and test center personnel. However, Prometric encourages anyone who would like to wear a mask at a test center to do so. The choice to wear a mask or not is up to the individual, regardless of vaccination status.

According to Prometric, this policy change is in response to current trends and guidance from world health organizations. Prometric will continue to follow guidance from local government and health officials in determining its COVID-19 policies. For more information, visit Prometric’s COVID-19 Update page and COVID-19 Frequently Asked Questions.

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Series 6 Solomon Study Guide, 3rd Edition, Now Available

If you need to take the FINRA Series 6 exam, the new 3rd edition of the Solomon Series 6 Study Guide covers everything you need to know to pass the exam. Continue reading

Are you thinking about a fulfilling career in the securities industry? There are many attractive roles to choose from, like investment adviser, financial adviser, insurance agent, or retirement plan specialist. Regardless of the path you choose, you’ll likely need to pass one or more licensing exams to qualify, such as the FINRA Series 6 exam. So how should you prepare for exam day?

Solomon Exam Prep has just released its 3rd edition of The Solomon Exam Prep Guide to the Series 6 Investment Company and Variable Contracts Products Representative Examination. To help professionals pass the exam, the Solomon Series 6 Study Guide is comprehensive and covers exam topics in easy-to-understand language. In addition, charts, graphs, and practice questions throughout the text support learners in understanding and applying key concepts.

What is the Series 6 exam?

The Series 6 is also known as the Investment Company and Variable Contracts Products Representative Examination. It is a representative-level exam for securities professionals who want to buy and sell certain investment products. Passing the Series 6 (plus the co-requisite Securities Industry Essentials, or SIE, exam) qualifies you to solicit, purchase, and/or sell:

    • Mutual funds (closed-end funds on the initial offering only)
    • Variable annuities
    • Variable life insurance
    • Unit investment trusts (UITs)
    • Municipal fund securities [e.g., 529 savings plans, local government investment pools (LGIPs)]

The Series 6 is only 50 questions long, but don’t let its humble length fool you. You’ll need to learn about many topics relating to the four main job functions of a Series 6 registered representative.

“The Series 6 exam is short, but it covers a lot of ground. Reading the Solomon Study Guide is the most crucial part of an effective study plan and will result in real learning. By mastering the concepts, test takers can handle any question the exam throws at them.”
Jeremy Solomon
Solomon Exam Prep President and Co-founder

What changes with this new edition?

The core content of the Series 6 Study Guide remains the same, but some key changes in the 3rd edition include:

    • Expanded and updated discussion of Regulation D private placements, including the SEC’s new definition of accredited investors

    • Additional, extensive coverage of Regulation Best Interest and the new suitability requirements it imposes on BDs

    • Expanded coverage of several aspects of mutual funds

    • Revised coverage of 529 college savings and prepaid tuition plans

    • Expanded coverage of FINRA’s taping rule with additional examples

Content updates for this new edition are also present in the Solomon Exam Simulator. The online Exam Simulator complements the Study Guide with over 3,000 practice questions for the Series 6. Take unlimited chapter quizzes and full exams to practice what you’ve learned and assess your growing knowledge.

Series 6 Study Materials

The Series 6 Study Guide is available as a digital subscription with a hardcopy upgrade option. It can be purchased individually or in a package with supporting Series 6 study products. Customers also have access to free tools and resources, including detailed study schedules in digital and pdf formats.

Learn more about Solomon Exam Prep’s Series 6 study materials, including Study Guide, Exam Simulator, Audiobook, Video Lecture, and Flashcards, by visiting the Solomon Series 6 product page.

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Elon University Students Studying for the SIE Exam with Solomon

Solomon Exam Prep’s SIE exam prep materials are helping finance students at Elon University prepare to take the FINRA SIE exam. Continue reading

Solomon Exam Prep is delighted to be partnering with Elon University in Elon, North Carolina, to bring Securities Industry Essentials (SIE) Exam prep to students this Spring 2022 term. Twenty students in the FIN 4780 SIE course are studying with Solomon SIE prep materials. The course will prepare students to take not only the FINRA SIE exam, but also the FINRA Series 7 exam after graduation. Instructor Thibaut G. Morillon, Ph.D., Assistant Professor of Finance in the Martha and Spencer Love School of Business, is teaching the course.

Elon students taking the course receive the Solomon Exam Prep SIE Total Package, which contains all the study materials they need to prepare for the SIE exam:

    • Digital Study Guide
    • Exam Simulator
    • Video Lecture
    • Audiobook
    • Digital Flashcards
    • Free resources and tools, including Solomon SIE Study Schedules and Pass Probability™, Solomon’s proprietary technology that predicts when students are ready to take their exams.
What’s the SIE exam?

The SIE exam was created by FINRA as a foundational exam for those wanting to enter the securities industry. Studying for the SIE exam enables students to learn the basics of the finance and securities industries, such as stocks, bonds, mutual funds, and ETFs. In addition, passing the exam can open doors to a variety of careers. Anyone over 18 years old can take the SIE and results are valid for four years, so college is a perfect time to take the exam.

The SIE exam is a co-requisite to the Series 7 and other FINRA representative-level exams. To take the Series 7 exam, a FINRA member firm must employ and sponsor you. If you pass the SIE and get hired by a broker-dealer, you can then take the Series 7 and become a registered representative in the securities industry.

Interested in partnering with Solomon?

Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Solomon can tailor its SIE curriculum to fit any course, including credit and non-credit courses, as part of a current course such as Finance or Capital Markets, or as a self-study program. The Solomon platform works equally well for in-person, hybrid, and online courses. And instructors receive access to the Instructor Portal, class slides, quizzes and exams, a custom study schedule, and QwizBang, Solomon’s interactive game platform.

Join institutions such as Elon University, Florida Memorial University, Pepperdine University, the University of North Carolina at Pembroke, University of Delaware, Adelphi University, University of Nebraska-Omaha, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.

To learn more about the ways colleges and universities can partner with Solomon, contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.

Bring SIE Exam Prep to Your Students

4th Edition of the Solomon Series 7 Study Guide Now Available

If you plan to take the FINRA Series 7 exam, the new edition of the Solomon Series 7 Study Guide covers everything you need to know to pass the exam. Continue reading

There are many exciting careers in the securities industry, such as stockbroker, investment adviser representative, financial advisor, and investment banker. Perhaps less exciting are the securities licensing exams you’re required to pass to pursue these careers. For example, if you’re interested in a career buying and selling all securities products, then you’ll need to pass the FINRA General Securities Representative Exam, also known as the Series 7 (plus the co-requisite Securities Industry Essentials, or SIE, exam).

The Series 7 is one of the longest FINRA exams. It is a 135-question test that covers the four main functions of a securities representative. You have three hours and 45 minutes to complete the exam. Like all qualifying exams in the securities industry, the Series 7 is closed-book. As one of the most challenging FINRA exams, it’s a good idea to be well-prepared going into test day. How should you prepare for the Series 7 exam?

Solomon Exam Prep has just released its 4th edition of The Solomon Exam Prep Guide to the Series 7 General Securities Representative Examination. To help professionals pass the exam, the Solomon Series 7 Study Guide is comprehensive and covers exam topics in easy-to-understand language. Charts, graphs, and practice questions throughout the text support learners in understanding and applying key concepts.

“The Series 7 is challenging. To pass this exam, you must learn the concepts, not just memorize test questions. The Solomon system focuses on teaching the core concepts in a digestible way and reinforcing them through examples and quizzes. This prepares customers not only for the exam, but also for their careers.”
Jeremy Solomon
Solomon Exam Prep President and Co-founder
What changes with this new edition?

While the core content remains the same, the 4th edition of the Series 7 Study Guide includes helpful content updates, along with general writing improvements.

Updates are also reflected in the Solomon Series 7 Exam Simulator. Designed to accompany the Study Guide, the online Exam Simulator contains over 4,400 original Series 7 practice questions with rationales that explain why an answer is correct. With the Solomon Series 7 Exam Simulator, learners can take an unlimited number of quizzes and exams, and the simulator comes with helpful self-assessment tools and Solomon’s proprietary Pass Probability™ technology, which calculates the probability that the student will pass the Series 7 exam.

Solomon Exam Prep is committed to providing industry-leading securities licensing materials, which are continuously kept up-to date. If you are an existing Solomon Series 7 customer, the new 4th edition will be automatically updated in your account, free of charge.

To learn more about Solomon Exam Prep’s Series 7 study materials, including Study Guide, Exam Simulator, Audiobook, Video Lecture, Flashcards, and Live Web Classes, visit the Solomon Series 7 product page.

Explore Series 7 Study Materials

Solomon Exam Prep Exhibiting at Midwest Finance Association 2022 Conference

If you’re attending the Midwest Finance Association 2022 Conference March 10-12, visit Solomon Exam Prep’s exhibitor booth. Continue reading

Solomon Exam Prep is proud to be sponsoring and exhibiting at the Midwest Finance Association 2022 Conference, which will be held at the Radisson Blu Aqua Hotel in Chicago, IL, March 10–12. Solomon invites attendees to visit our booth to learn about how Solomon provides its innovative Securities Industry Essentials (SIE) exam prep to colleges and universities across the country.

About the MFA

Founded in 1951, the Midwest Finance Association is a nonprofit professional association of academics and finance industry professionals dedicated to the furtherance of finance education. The organization currently has over 400 members from more than forty countries, and membership is open to anyone who has a career in the area of finance. The annual conference provides a forum for the exchange of intellectual ideas between academic and business circles.

What is the SIE Exam?

The FINRA SIE exam is the foundational exam required for anyone who wants to become licensed to work in the securities industry. Passing the SIE shows potential employers that you have mastered the basics of the industry and opens doors to a variety of careers. Anyone over 18 years old can take the SIE, so it’s perfect for college students.

Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Join institutions such as Florida Memorial University, Pepperdine University, the University of North Carolina at Pembroke, University of Delaware, Adelphi University, University of Nebraska-Omaha, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.

To learn more about the ways colleges and universities can partner with Solomon, contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.

Bring SIE Exam Prep to Your Students

Florida Memorial University, InspereX, and Solomon Exam Prep Bring SIE Exam Prep to FMU Students

With sponsorship from InspereX, FMU students will receive the Solomon study materials and exam fee they need to pass the FINRA Securities Industry Essentials (SIE) Exam. Continue reading

Solomon Exam Prep is pleased to announce a partnership with Florida Memorial University and InspereX to support FMU School of Business students in preparing for and taking the FINRA Securities Industry Essentials (SIE) Exam. Through this partnership, FMU is offering an SIE Self-Study Program led by Visiting Instructor of Finance and Marketing, Lawrence Goehrig, in Spring 2022.

Thanks to the generosity of InspereX, FMU students will receive the top-of-the-line Solomon SIE Total Study Package. InspereX is also funding the purchase of hardcopy Study Guide upgrades for all students in the program, plus the FINRA SIE Exam fee, which is $80.00 per student.

Solomon Exam Prep President Jeremy Solomon says

“Solomon is honored to work with FMU and InspereX to help prepare students to take the FINRA SIE Exam. The SIE is the foundational exam required for anyone who wants to become licensed to work in the securities industry, and passing the SIE exam will give FMU students a competitive edge in the job market.”

Geared to fit a variety of learning styles, the Solomon SIE Exam Total Package includes the full line of Solomon SIE materials: digital Study Guide, Exam Simulator, Audiobook, Video Lecture with downloadable slides, and digital Flashcards. Students will also be able to take advantage of free resources and tools, including Solomon Study Schedules and Solomon Pass Probability™ technology. And with access to the Solomon Instructor Admin Portal, Professor Goehrig will be able to monitor his students’ progress to assist them as they study.

Florida Memorial University, founded in 1879, is one of the oldest academic centers in Florida, and is the only historically Black university in southern Florida. The university offers 27 undergraduate degree programs and three master’s programs.

InspereX is a leading fintech transforming how fixed income securities and market-linked products are accessed, evaluated, and traded. The firm has principal offices in Delray Beach, San Francisco, Chicago, and New York City.

About Solomon Exam Prep

Founded by Karen Solomon (Ph.D., University of Chicago) and Jeremy Solomon (MBA, Wharton), Solomon Exam Prep has helped thousands pass their securities licensing exams including the SIE, Series 3, 6, 7, 14, 22, 24, 26, 27, 28, 50, 51, 52, 53, 54, 63, 65, 66, 79, 82 and 99.

Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Join institutions such as Florida Memorial University, Pepperdine University, the University of North Carolina at Pembroke, University of Delaware, Adelphi University, University of Nebraska-Omaha, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.

To learn more about the ways colleges and universities can partner with Solomon, contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.

Bring SIE Exam Prep to Your Students

Solo 401(k), SEP, & SIMPLE: Retirement Plans for Small Businesses

Be prepared for questions about SIMPLE, SEP, and solo 401(k) retirement account plans on the FINRA Series 6 and Series 7 exams. Continue reading

If you are studying for the FINRA Series 6 or Series 7 exam, you will need to learn about the different types of retirement plan accounts. A retirement account may be an individual plan that is managed by the participant or the participant’s agent, such as an investment firm or a trust bank. Or it may be employer-sponsored, meaning that it is organized and managed by the participant’s employer.
  
Private employers of any size and structure, from the largest C corporation to a sole proprietorship consisting of a single self-employed individual, may set up and use an employer-sponsored retirement plan. For small business owners, retirement plans offer significant tax advantages and can help attract employees. Since there are several types of retirement plans available for small businesses, it’s important to understand the features of each option. Three plans commonly chosen by small businesses are solo 401(k) plans, SEP plans, and SIMPLE plans.

Solo 401(k) Plans  

A business owner can open a solo 401(k) if the business does not employ anyone else. The owner of the business creates a 401(k) plan much like any other employer. Then, as an employee, the owner opens a 401(k) account within that plan.
 
Both employer and employee contributions can be made in a solo 401(k). The maximum employee contribution is the same as for other 401(k)s. As of 2022, this limit is $20,500 per year, with a catch-up contribution of $6,500 for those aged 50 and above. As an employer, the maximum annual contribution is 25% of what the owner pays herself. The combined annual contribution (employee and employer) cannot exceed $61,000.
 
The business owner is allowed to employ her spouse and still make use of a solo 401(k) plan. The spouse can open their own 401(k) account using the business’s solo 401(k) plan. A solo 401(k) can be created whether the business is set up as a corporation, LLC, or sole proprietorship. Self-employed people who haven’t set up a business can also create a solo 401(k), although their contribution limits are calculated differently.
  
Unlike most employer-sponsored retirement plans, solo 401(k)s do not need to comply with ERISA (the Employee Retirement Income Security Act). This is a federal law that requires employers to give employees fair access to the employer’s retirement plan. These concerns do not apply when the business has no other employees.

SEP 

Simplified Employee Pension (SEP) plans are IRA-based retirement plans for any size business but are usually favored by small businesses. Under this type of plan, the business owner can make pre-tax contributions into IRA accounts set up for eligible employees and also for herself if the owner is self-employed.

The plan allows employers to skip contributions in years when business is bad, but if the owner makes a contribution for herself, she must also make contributions for her employees. When contributions are made, they must be made for all participants who actually performed work during the year for which the contributions are made, including those over 72 years of age (the latter feature is unique to the SEP plan). Contributions for all participants generally must be uniform, for example the same percentage of hourly wage.
 
The business owner can make contributions of up to 25% of an employee’s salary, or an annual maximum of $61,000, whichever is less. Only the employer, and not the employee, makes contributions to the SEP IRA, but an employee is always 100% vested in his SEP IRA. Generally, the employer can take an income tax deduction for contributions made to each employee’s SEP. SEP contributions are not included on the employee’s W-2 statement for tax purposes. Rules for withdrawal of funds are generally the same as for any other IRA, meaning that withdrawals are subject to income taxes, and early withdrawals are usually subject to a penalty.

SIMPLE 

Savings Incentive Match Plan for Employees (SIMPLE) plans are retirement plans for businesses having no more than 100 employees. With a SIMPLE IRA or SIMPLE 401(k), the employee may make pre-tax contributions to the plan. The contribution is expressed as a percentage of the employee’s compensation and is limited to $14,000 a year ($17,000 for employees aged 50 and over). The employer is required to either match these contributions up to 1% to 3% of the employee’s compensation or to contribute 2% whether the employee makes a contribution or not. The employer chooses which type of contribution (and if matching, the maximum percentage it will match). This choice applies to all employees. So an employer who chooses matching contributions is not obligated to contribute 2% to an employee who chooses not to contribute.
 
Any employee who previously earned at least $5,000 during any two years and is reasonably expected to receive at least $5,000 during the current calendar year is eligible to participate in this plan. Unlike the SEP plan, however, premature SIMPLE IRA distributions (withdrawals of account funds) will incur a 25% penalty in the first two years the account exists if made before age 59 1/2.
 
While the SEP plan is discretionary, in that the employer can decide when to fund the plan, funding the SIMPLE IRA plan is mandatory, no matter what kind of year the business had. A SIMPLE 401(k) functions similarly to a SIMPLE IRA. Both have the same contribution limits and are 100% vested from the beginning.

Good to know:

SEP and SIMPLE IRAs have characteristics in common with traditional IRAs. For example, contributions are generally made with pre-tax dollars, must be earned income, and must only be in cash. Taxes on contributions and earnings are deferred until withdrawal, as long as withdrawals occur after the age of 59 1/2. Required minimum distributions (RMDs) must begin the year the participant turns age 72, although the participant may choose to delay the first payment until April 1 of the following year. After that, RMDs must be taken by December 31 each year. Funds can be distributed as a lump sum or in periodic payments. If the account owner fails to withdraw an RMD or the full amount of the RMD before the deadline, the amount not withdrawn is taxed at 50%.

Common Retirement Plans for Small Businesses

Anyone who plans to become a registered representative by passing the Series 6 or Series 7 exam and assist customers with retirement plans must understand the complexity of retirement planning. The Solomon Exam Prep Series 6 Study Guide and Series 7 Study Guide both cover retirement plan accounts so that you can be prepared for questions about this topic on exam day. Visit the Solomon website to explore study materials for 21 different securities exams, including the Series 6 and 7.

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Pepperdine University Partners with Solomon on SIE Prep Course

Solomon Exam Prep’s Securities Industry Essentials (SIE) Exam prep materials will be used by students at Pepperdine University this Spring 2022 term. Continue reading

Solomon Exam Prep is thrilled to announce that Pepperdine University in Malibu, California, will be using the Solomon SIE curriculum for a course in the spring 2022 term. This marks the second time Pepperdine has used Solomon SIE materials in one of their courses in the Graziadio Business School, which offers full-time, part-time, and executive MBA programs, as well as doctorate, master’s, bachelor’s, joint degrees, and professional development certificate courses. 

The seven-week, in-person class, Contemporary Issues in Business and Management, will be taught by Professor Chris Manfrè, MBA, PhD, and will give students the chance to explore current topics in business and management. Students will be using the Solomon SIE Total Package as their main course material, which includes the digital Study Guide, Exam Simulator, Audiobook, Video Lecture, and Flashcards. The course will help prepare students to take the FINRA Securities Industry Essentials (SIE) Exam.

Bring the SIE To Your Campus

Solomon Exam Prep can tailor its SIE curriculum to fit any course, including credit and non-credit courses, as part of a current course such as Finance or Capital Markets, or as a self-study program. The Solomon platform works equally well for in-person, hybrid, and online courses. And no matter what kind of course it is, instructors receive access to the Instructor Portal, class slides, quizzes and exams, a custom study schedule, and QwizBang, Solomon’s interactive game platform.

Solomon Exam Prep partners with dozens of colleges and universities to bring the Solomon SIE exam prep program to students across the country. Join institutions such as Pepperdine University, the University of North Carolina at Pembroke, University of Delaware, Adelphi University, University of Nebraska-Omaha, Seton Hall University, Ohio Dominican University, Georgetown University, Widener University, and University of Dallas in partnering with Solomon.

To learn more about the ways colleges and universities can partner with Solomon, visit the website or contact Beth Hamilton, Higher Education Development Manager, at beth@solomonexamprep.com or 503-601-0212.

Solomon Exam Prep has helped tens of thousands pass their FINRA, NASAA, MSRB, and NFA licensing exams including the SIE, Series 3, 6, 7, 14, 22, 24, 26, 27, 28, 50, 51, 52, 53, 54, 63, 65, 66, 79, 82, and 99.

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