Chapter 10 quiz
The IRS has a "minimum coverage" Who are regarding qualified retirement plans. This rule states that each qualified plan is required to
Benefit a board cross section of employees
An employee welfare plan exempt from ERISA regulations would be
Church plans
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee?
Distribution is subject to federal income tax withholding
What is another name for a Keogh plan?
HR 10 plan
According to the IRS, a company may NOT do which of the following in regards to funds in a qualified retirement plan?
Repossess the funds for business purposes
What does a 401(k) plan generally provide its participants?
Salary-deferral option
Which of these is a true statement regarding Survivor benefits under a qualified retirement plan?
Survivor benefits can only be waived with the written consent of a married employee's spouse
An individual working part-time has a gross income a $5000 for the year. If this individual has a IRÁ, what is the maximum deductible IRA contribution allowable?
$5000
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
20% is withheld for income taxes
The time limit and individual has to "rollover" funds from an IRA or qualified plan is
60 days
ERISA requires that a Summary Plan Description must be provided to a new plan member within how many days following the new member's eligibility date?
90
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?
Income taxes plus a 10% penalty tax on $30,000
An employer that offers a qualified retirement plan (as opposed to a non-qualified plan) to its employees is eligible to
Make tax deductible contributions to the plan
XYZ Corp has implemented a qualified retirement plan. This plan may NOT discriminate
in favor of highly compensated employees
Contributions made by an employee to a qualified retirement plan are required to be
subject to a vesting schedule
