1. What are some examples of different reasons an employer might have for adopting a qualified plan? How might the different reasons for adopting a qualified plan impact on the type of plan a company would adopt?

2. What are the differences between defined benefit plans and defined contribution plans? In answering this question, explain why a cash balance plan is a defined benefit plan, and why the target benefit plan is a defined contribution plan.

3. How does a profit-sharing plan differ from a money purchase plan? Under what circumstances, and from whose point of view, would a profit-sharing plan be better than a money purchase plan?

4. Your client is the owner of a business with six employees, and is thinking about setting up a qualified retirement plan. What questions would you ask the client, and why, to determine what kind of plan would be best for her? What questions would you ask the client, and why, to determine whether there might be some retirement-planning alternative better than a qualified plan?