Retirement Savings and Income Planning Chapter 1
ERISA requires reporting and disclosure of plan information to all of the following except
plan sponsors.
Which of the following statements regarding top-heavy plans is CORRECT?
An accelerated vesting schedule is used when a defined benefit pension plan is top heavy. A qualified plan is considered top heavy if it provides more than 50% of its aggregate accrued benefits or account balances to key employees.
Which of the following are minimum coverage tests for qualified retirement plans?
Average benefits percentage test Ratio test
Scott is the fiduciary of the BSB retirement plan. The entity responsible for monitoring his actions as a fiduciary is
the DOL
ERISA requires reporting and disclosure of plan information to all of the following
the Internal Revenue Service (IRS) plan participants. the Department of Labor (DOL).
IRS
The Internal Revenue Service (IRS) carries out the task of supervising the creation of new, qualified retirement plans.
Qualified retirement plans are which of these?
They are subject to ERISA requirements. They offer tax-deferred earnings to employees.
Nigel's employer, Alpha, Inc., maintains a qualified defined benefit pension plan. There are 100 eligible employees working for Alpha, Inc. What is the minimum number of employees the retirement plan must cover to satisfy the 50/40 test?
40
Jerry wants to establish a qualified plan for his business to provide employees of the company with the ability to save for retirement. Which of the following plans is a qualified plan?
I only
Which of the following is an example of a qualified retirement plan?
Section 401(k) plan New comparability plan Employee stock ownership plan (ESOP)
Which of the following is NOT an example of a qualified retirement plan?
Section 403(b) plan Deferred compensation plan SEP plan
DOL
The Department of Labor (DOL) governs the actions of plan fiduciaries and ensures compliance with the ERISA plan reporting and disclosure requirements.
Qualified retirement plans should do which of the following?
They must meet specific vesting requirements. They have special tax advantages over nonqualified plans. They must provide definitely determinable benefits.
Max is the finance director for Bland Foods, Inc. He is trying to implement a new qualified retirement plan for the company. There are numerous federal guidelines with which the company must comply. Which of the following federal agencies is tasked with supervising the creation of new, qualified retirement plans?
IRS
Which of the following describe differences between a tax-advantaged retirement plan and a qualified plan?
IRA-funded employer-sponsored tax-advantaged plans may not incorporate loan provisions. Employer stock distributions from a tax-advantaged plan do not benefit from NUA tax treatment. IRA-funded employer-sponsored tax-advantaged plans are SEPs, SARSEPs, and SIMPLE IRAs.