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 As beneficiary, he will pay ____ taxes on any money withdrawn.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