Can a participant in a qualified plan have the plan purchase life insurance on the life...
Can a participant in a qualified plan have the plan purchase life insurance on the life of a business partner?
Homework Answers
No. The participant cannot have plan purchase life insurance on a third party's life (in this case the business partner). The beneficiaries receive money in case of the death of the participant. The participant will not receive money in case of the death of the business partner.
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Can a participant in a qualified plan have the plan purchase
life insurance on the life...
Question 10 1 pts Normally, a qualified plan must prohibit the assignment or alienation of benefits...
Question 10 1 pts Normally, a qualified plan must prohibit the assignment or alienation of benefits to anyone other than the plan participant. What is one notable exception to this prohibition? O A de minimis assignment of up to 20% of any benefit payment due to the participant O A distribution from the plan used for payment to the participant's creditors A qualified domestic relations order (QDRO) in the event of a participant's legal separation An agreement with the plan...
Abiha is a 52-year-old an unmarried taxpayer who is not an active participant in an employer-sponsored qualified retirement plan. Before IRA contributions, his AGI is $68,000 in 2018. What is the maxi...
Abiha is a 52-year-old an unmarried taxpayer who is not an active participant in an employer-sponsored qualified retirement plan. Before IRA contributions, his AGI is $68,000 in 2018. What is the maximum amount she may contribute to a tax deductible IRA? A) $4,500 B) $5,500 C) $6,500 D) $7,500 Prisha, a single 40-year-old physician, is covered by a qualified retirement plan at work. Her salary is $120,000, and her total AGI is $132,000. The maximum contribution she can make to...
as a participant in a high deductible health insurance plan, Pete also qualifies for a health...
as a participant in a high deductible health insurance plan, Pete also qualifies for a health saving account. pete sets up the account and contribute $3,000 to the account in the current year. he also take a distribution from the account of $2,000 to pay for dental expense: what is the health savings account deduction (show steps)
Andres has received the following benefits this year: Salary $92000 Contribution to qualified pension plan $10200...
Andres has received the following benefits this year: Salary $92000 Contribution to qualified pension plan $10200 Qualified health insurance premiums $8400 Year-end bonus $15000 Group - term life insurance premiums (face=$40000) 1750 whole life insurance premiums (face=$100000) 2420 Disability insurance premiums $ 1800 Besides these benefits, Andres missed work for two months due to an illness. During his illness, Andres received $6500 in sick pay from a disability insurance policy. Assume Andres has disability insurance provided by his employer as...
16. A company maintains a qualified pension plan for all of its employees. The company can...
16. A company maintains a qualified pension plan for all of its employees. The company can also establish a qualified profit sharing plan for its management team. True or False
Life insurance used to fund a three-person partnership buy/sell agreement using a cross purchase technique: a....
Life insurance used to fund a three-person partnership buy/sell agreement using a cross purchase technique: a. will have the same number of policies as an entity plan. b. will be paid for with tax-deductible dollars. c. will require three policies. d. will require six policies.
Jeannie is employed by a business that operates a qualified profit-sharing plan. a. In 2018, when...
Jeannie is employed by a business that operates a qualified profit-sharing plan. a. In 2018, when her compensation is $50,000, what is the maximum contribution the business can make for her? $ ? b. If Jeannie's salary was $250,000, what is the maximum contribution? $ ?
A man wishes to purchase a life insurance policy that will pay the beneficiary $15,000 in...
A man wishes to purchase a life insurance policy that will pay the beneficiary $15,000 in the event that the man's death occurs during the next year. Using life insurance tables, he determines that the probability that he will live another year is 0.97. What is the minimum amount that he can expect to pay for his premium? Hint: The minimum premium occurs when the insurance company's expected profit is zero.
An employer can exclude which of the following employees from coverage under a qualified plan? (A)...
An employer can exclude which of the following employees from coverage under a qualified plan? (A) Employees with 1,250 hours per year Employees younger than 22 Nonhighly compensated employees Employees who have worked less than 1 year
Carolina Insurance Company, an all-equity life insurance firm, is considering the purchase of a fire insurance...
Carolina Insurance Company, an all-equity life insurance firm, is considering the purchase of a fire insurance company. The fire insurance company is expected to generate a return of 20 percent with a beta of 2.5. If the risk-free rate is 8 percent and the market risk premium is 6 percent, the expected return from the insurance company is _____. (a) 23% (b) 8% (c) 14% (d) 10% (e) 29%
Question 10 1 pts Normally, a qualified plan must prohibit the assignment or alienation of benefits to anyone other than the plan participant. What is one notable exception to this prohibition? O A de minimis assignment of up to 20% of any benefit payment due to the participant O A distribution from the plan used for payment to the participant's creditors A qualified domestic relations order (QDRO) in the event of a participant's legal separation An agreement with the plan...
An employer can exclude which of the following employees from coverage under a qualified plan? (A) Employees with 1,250 hours per year Employees younger than 22 Nonhighly compensated employees Employees who have worked less than 1 year
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