Qualified Plans

Which of the following is NOT true regarding a nonqualified retirement plan?

It needs IRS approval.

Employer contributions made to a qualified plan

Are subject to vesting requirements.

Which of the following applicants would NOT qualify for a Keogh Plan?

Someone who works 400 hours per year

If a company has a Simplified Employee Pension plan, what type of plan is it?

A qualified plan for a small business

SIMPLE Plans require all of the following EXCEPT

At least 1,000 employees.

Which of the following is an IRS qualified retirement program for the self-employed?

keogh

All of the following apply to defined benefit plans EXCEPT

Contributions are tied to the company profits.

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit sharing plan

What is the primary purpose of a 401(k) plan?

Retirement

Who may contribute to an HR-10 plan?

Self-employed plumber

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

Taxation on accumulation

All of the following are general requirements of a qualified plan EXCEPT

The plan must provide an offset for social security benefits.

For a retirement plan to be qualified, it must be designed for the benefit of

Employees

All of the following statements are true regarding tax-qualified annuities EXCEPT

Employer contributions are not tax deductible.

An IRA purchased by a small employer to cover employees is known as a

Simplified Employee Pension plan.