Chapter 8 - Question 9 :
Help me to explain this. Thank you
Which of the following statements concerning an employer’s responsibilities associated with a qualified retirement plan is (are) correct?
(1) Summary Plan Descriptions must be given to participants
within 90 days of eligibility.
(2) The employer has a fiduciary responsibility to the
participants.
A. (1) only
B. (2) only
C. Both (1) and (2)
D. Neither (1) nor (2)
C: Both 1 and 2
When the employees enroll for the qualified retirement plan, he should send the SPD within 90 days to them. ALso the employer has a fiduciary responsibility since he exercises control over the assets.
Chapter 8 - Question 9 : Help me to explain this. Thank you Which of the...
Chapter 8 - Question 8 : Help me to explain this question. Thank you Which of the following qualified plans require mandatory funding? 1. Defined benefit pension plans. 2. 401(k) plans with an employer match organized as a profit-sharing plan. 3. Cash balance pension plans. 4. Money purchase pension plans.
Chapter 9 - Question 4 : Help me to explain this question. Thank you Dave, single and age 53, is a participant of his employer’s qualified profit sharing plan. For the current year he received a forfeiture allocation of $250, but the employer did not make any other contribution for the year. Dave would like to make an IRA contribution. If Dave’s AGI is $79,000 (all comprised of W-2 earnings and portfolio income), what is the maximum IRA contribution Dave...
Chapter 7 - Question 8 : Please help me to explain this question. Thank you BJ has a vested account balance in his employer-sponsored qualified money purchase pension plan of $60,000. He has two years of service with his employer and the plan follows the least generous graduated vesting schedule permitted under PPA 2006. If BJ has an outstanding loan balance within the prior 12 months of $15,000, what is the maximum loan BJ could take from this qualified plan,...
Chapter 7 - Question 6 : Please help me to explain these questions. Thank you Which of the following is correct regarding converting traditional IRA funds to a Roth IRA? A. Only taxpayers with AGI less than $100,000 may convert traditional IRA funds to a Roth IRA. B. The conversion is tax and penalty free if done as a direct rollover. C. The conversion can be recharacterized if done before the due date of the tax return...
Chapter 8 - Question 6 : Please, help me to explain this question. Thank you ABC Corporation, is considering implementing some form of retirement plan. The client’s objectives for the plan, in order of importance, are: 1. Rewarding long-term employees 2. Retention of employees 3. Providing a level of income at retirement equal to 50% of an employee’s earnings 4. Tax-deductible funding 5. No risk to employees of benefits available The company indicates it is willing to contribute an amount...
Chapter 9 - Question 6 : Help me to explain this question about contribution and what is the maximum deductible IRA contribution? Thank you Sal, single and age 72, is a participant of his employer’s qualified profit sharing plan. For the current year he received a profit-sharing contribution of $1,200. Sal would like to make a deductible IRA contribution. If Sal’s AGI is $49,000 (all comprised $15,000 of W-2 earnings, and the rest as Social Security and portfolio income), what...
Chapter 9 - Question 8 : Help me to explain this question. Thank you Jordan contributed $5,000 each year to her Roth IRA for eleven years. At age 57, Jordan’s IRA was worth $100,000 consisting of $55,000 in contributions, $25,000 in conversions from her 401(k) plan last year, and earnings of $20,000. What are the tax consequences if Jordan takes a complete distribution of the Roth IRA at age 57, once she has retired, to travel around the world? A....
Chapter 9 - Question 2 : Please, give me the explain on these plan. Thank you Participation in which of the following plans will not be considered active participation for purposes of IRA deductibility? A. Tax sheltered annuity. B. Simplified employee pension. C. SIMPLE. D. 457 plan.
Question 2 - Chapter 5 : Calculate the maximum contribution in 2018 for a 52-year-old employee earning $140,000 annually, working in a company with the following retirement plans: (1) a 401(k) with no employer match, and (2) a money-purchase plan with an employer contribution equal to 12% of salary: A. $16,800 B. $18,500 C. $24,500 D. $41,300 E. $55,000 Question 3 - Chapter 5 : Jack and Jill own a successful engineering company, which sponsors a 401(k) plan that...
Chapter 10 - Question 2 : Can you give me an explain this question. Thanh you Question 2 Which of the following statements regarding 457 plans is(are) true? An individual who defers $18,500 to his 403(b) plan during 2018 can also defer $18,500 to a 457 plan during 2018 (salary and plan permitting). A 457 plan allows an executive of a tax-exempt entity to defer compensation into an ERISA protected trust. In the final three years before normal retirement age,...