10 - Retirement Plans

Under a 10-year vesting schedule, what percentage of employer contributions must be vested after 10 years of service?

100%

What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)?

Disclosure and reporting

What does ESOP stand for?

Employee Stock Ownership Plan

How are Roth IRA's treated for tax purposes?

Non-deductible contributions and tax-free distributions

Retirement plans are prevented from favoring highly compensated employees under which government regulation?

Nondiscrimination

Retirement plans cannot favor highly compensated employs. The government regulation that prevents this from happening is called

Nondiscrimination

How are contributions made to a Roth IRA handled for tax purposes?

Not tax deductible

Non-deductible contributions are typically associated with a

Roth IRA

ESOPs are typically invested in

employer stock

Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any money withdrawn.

income

Employer contributions to qualified plans are

tax-deductible by the employer