Qualified plans Quiz Chapter 6
Which of the following is NOT true regarding a non qualified retirement plan
It needs IRS approval
A tax-sheltered annuity is a special tax-favored retirement plan available to
Certain groups of employees only
An Internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(n)
403(b) Plan (TSA)
Under the 401(k) bonus or thrift pan, the employer will contribute
An undetermined percentage for each dollar contributed
Employer contributions made to a qualified plan
Are subject to vesting requirements
SIMPLE Plans require all of the following EXCEPT
At least 1,000 employees.
All of the following apply to defined benefit plans EXCEPT
Contributions are tied to the company profits
For a retirement plan to be qualified, it must be designed for the benefit of
Employees
All of the following statements are true regarding tax-qualified annuities EXCEPT
Employer contributions are not tax deductible
Which of the following statements concerning a Simplified employee Pension plan (SEP) is INCORRECT
SEPs are suitable for large companies
An IRA purchased by a smaller employer to cover employees is know as a
Simplified Employee Pension Plan
Which of the following applicants would NOT qualify for a Keogh Plan?
Someone who works 400 hours per year
All of the following would be different between qualified and non qualified retirement plans EXCEPT
Taxation on accumulation
All of the following employees may use 403(b) plan for their retirement EXCEPT
The CEO of a private corp
Under a SIMPLE plan, Which of the following is TRUE regarding taxation on both contributions and earnings?
They are tax deferred until withdrawn