FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Employer-Sponsored Retirement Plans

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

This type of hybrid plan is based on income and years of service,uses individual accounts,passes the IRS's cross-testing rules and the total benefits are based on the investment performance of the plan's assets.(Target Benefit Plans)

A) Target benefit plan
B) Money purchase plan
C) Age-weighted profit sharing plan
D) Cash balance plan

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

A salary reduction agreement refers to the annual maximum allowable contribution to a participant's account in a defined contribution plan.(Defined Contribution Plans)

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

Savings Incentive Match Plans for Employees (SIMPLEs)can be either leveraged or nonleveraged.(Savings Incentive Match Plans for Employees (SIMPLEs))

There are three possible contribution sources for defined contribution plans.Which of the following is not one of those sources? (Defined Contribution Plans)

The Pension Benefit Guarantee Corporation recognizes three types of plan terminations: distress terminations,involuntary terminations,and standard terminations.(Defined Contribution Plans)

Discuss the controversies related with cash balance retirement plans.(Concerns about Cash Balance Plans)

Briefly discuss the origins and trends in retirement plans in the US.(Defining Retirement Plans)

Top-heavy provisions ensure minimum benefits for key employees.(Qualified vs.Nonqualified Plans)

Employers can take tax deductions on qualified plans.(Qualified vs.Nonqualified Plans)

Under a defined contribution plan,ERISA requires that a fiduciary be named.List the responsibilities of the fiduciary (Defined Contribution Plans)

The Revenue Act of 1921 instituted retirement plans as a mandatory bargaining subject between unions and management.(Origins of Employer-Sponsored Retirement Benefits)

Public organizations may offer both 40l(k)and 403(b)plans,but private tax-exempt organizations are prohibited from offering 401(k)plans.(403(b)Tax-Deferred Annuity Plans)

Capital-intensive businesses require highly capable employees who have the aptitude to learn how to use complex physical equipments such as casting machines and robotics.(Trends in Retirement Plan Coverage and Costs)

Defined contribution plans guarantee particular benefit amounts to participating employees.(Defined Contribution Plans)

Which of the following is a tax benefit associated with 401(k) plans? (401(k) Plans)

Retirement benefits are generally distributed in one of these three ways.(Qualified vs.Nonqualified Plans)

Employers establish qualified plans when all of the ERISA minimum standards are met.Failure to meet at least one minimum standard results in a plan becoming disqualified.List as many ERISA minimum standards as you can remember and explain the main advantage of offering qualified plans.(Qualified vs.Nonqualified Plans)

Accrual rules specify the rate participants can accumulate benefits.(Qualified vs.Nonqualified Plans)

Service industries such as retail and food service are not capital intensive,and most have the reputation of paying low wages and offering less generous benefits,including retirement plans.(Trends in Retirement Plan Coverage and Costs)

This type of hybrid plan defines benefits for each employee by reference to the amount of the employee's hypothetical account balance.(Cash Balance Plans and Pension Equity Plans)