Qualified plans
Employer contributions Made to a qualified plan
Are subject to vesting requirements
Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings?
they are tax deferred until withdrawn
If a retirement plan or annuity is "qualified", this means
It is approved by the IRS
Employer has sponsored a qualified retirement plan for its employees for the employer will contribute money wherever a profit is realized what is this called
Profit sharing plan
All of the following employees may use a 403B plan for their retirement except The vice president of a charitable organization The CEO of a private corporation A school bus driver A part-time classroom aide
The CEO of a private corporation
In a defined contribution plan
The contribution is known in the benefit is unknown
Which of the following is true of a qualified plan It may discriminate in favor of highly paid employees It may allow unlimited contributions It has a tax benefit for both employer and employee It does not need to have a vesting schedule
It has a tax benefit for both employer and employee
All of the following statements are true regarding tax qualified annuities except With drawls are taxed Employer contributions are not tax-deductible Annuity earnings are tax deferred They must be approved by the IRS
Employer contributions are not tax deductible
Under a defined benefit retirement plan, who determines what benefits a retired employee will receive
Employer
All of the following would be eligible to establish a keogh retirement plan except A hairdresser who operates her business at her house The president and employee of a family corporation The sole proprietor of a service station who employes four employees So proprietor of film development store with no employees
The president is an employee of a family corporation
All of the following would be different between qualified and non-qualified retirement plans except Taxation on accumulation Taxation of withdraws Taxation of contributions IRS approval requirements
Taxation on accumulation
Which of the following statements concerning a simplified employee pension plan, SEP, is incorrect They allow the employer to make annual tax deductible contributions up to 25% of employees earned income They have a higher tax deductible contribution limit on an IRA Employer contributions are not included in the employees gross income They are suitable for large employees
They are suitable for large Companies
SIMPLE plans require all of the following except Employees must receive a minimum of $5000 in an annual compensation At least 1000 employees No other qualified plan can be used No more than 100 employees
At least 1000 employees
Two attorneys operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for them and three employees. They would likely Choose
HR-10 (keogh plan)
All of the following are general requirements of a qualified plan except The plan must provide an offset for Social Security benefits The plan must be communicated to all employees The plan must be for the exclusive benefits of the employees and their beneficiaries The plan must be permanent, written and legally binding
The plan must provide an offset for Social Security benefits
