Unit 24

An individual covered under a traditional IRA would not be able to also maintain...

401k and 403b

What employer - sponsored plans allows coverage to discriminate in favor of key employees?

457 Plan. Because technically non-qualified, it does not come under the non-discrimination rules of Erisa.

The employer does not get a current tax deduction when offering which of the following retirement plans?

Deferred compensation plan. There is no constructive receipt of income until the deferral period is over. Other plans (DDP, MPP AND SIMPLE PLAN) all qualified, any contributions made by the employs repo a current business expense and are deductible from the company's income.

Why plan offers tax-deductible contributions?

HSA

10% early distribution penalty of QDROs is not available for which retirement plan?

IRAs (traditional, Roth, Sep)

What are the three basic conditions for the safe harbor Section 401k?

Investment selections, investment control, communicating required information.

What does the IPS include?

Methods of performance measurements and a way to determine how future cash flow needs will be met. The types of specific securities to be purchased in a portfolio.

What type of retirement plan is a SIMPLE Plan?

Qualified Plan

What is the SPD ( Summary Plan Description)?

Required document that gives employees a summary of the plan and its features.

When a corporation establishes a qualified money purchase plan...

The corporation is obliged to make annual contributions at the rate stated in the plan.