Qualified plans Quiz Chapter 6

Which of the following is NOT true regarding a non qualified retirement plan

It needs IRS approval

A tax-sheltered annuity is a special tax-favored retirement plan available to

Certain groups of employees only

An Internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(n)

403(b) Plan (TSA)

Under the 401(k) bonus or thrift pan, the employer will contribute

An undetermined percentage for each dollar contributed

Employer contributions made to a qualified plan

Are subject to vesting requirements

SIMPLE Plans require all of the following EXCEPT

At least 1,000 employees.

All of the following apply to defined benefit plans EXCEPT

Contributions are tied to the company profits

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

Which of the following statements concerning a Simplified employee Pension plan (SEP) is INCORRECT

SEPs are suitable for large companies

An IRA purchased by a smaller employer to cover employees is know as a

Simplified Employee Pension Plan

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

Someone who works 400 hours per year

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

Taxation on accumulation

All of the following employees may use 403(b) plan for their retirement EXCEPT

The CEO of a private corp

Under a SIMPLE plan, Which of the following is TRUE regarding taxation on both contributions and earnings?

They are tax deferred until withdrawn