Ch. 11

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

Which of the following is NOT a federal requirement of a qualified plan?

Employee must be able to make unlimited contributions

ESOP are typically invested in

Employer stock

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

Non-deductible contributions are typically associated with a

Roth IRA

Employer contributions to qualified plans are

Tax deductible by the employer