41.Larry, age 55, is employed by BB Trucking Company as a tire repair specialist. He earns $62, 000 per year and received an allocation of $32,000 to his employer-provided profit sharing plan for the year. If BB Trucking does not match employee deferrals, what is the maximum amount Larry can defer to his

401(k) plan for the 2013 plan year?

(a) $14, 000.

(b) $17,500.

(c) $19,000.

(d) $23,000.

42.Alison earned $100,000 during the year. She elected to defer

$4, 000 of her earnings into her employer's 401(k) plan and

her employer matched this deferral dollar-for-dollar. In this year, what amount of Alison's earnings were subject to payroll taxes?

(a) $92,000.

(b) $96,000.

(c) $100,000.

(d) $104,000.

43.0f the following expenditures, which is most likely to increase during retirement?

(a) Automobile expenses. (b) Medical expenses.

(c) Travel expenses. (d) Mortgage expense.

44.Which

(a) (b) (c)

(d)

of the following is not a qualified retirement plan? ESOP.

401(k) plan.

403(b) plan.

Target benefit plan.

45.Which of the following people is considered highly compensated for 2013?

(a) Robin, a 1% owner who earns $80,000 per year.

(b) Helen, who earned $125,000 last year and is the 40th highest paid employee of 100 employees.

(c) Casey, a 20% owner who earns $40,000 per year. (d) Donna, a 5% owner who earns $45,000 per year.

46.Within a defined benefit pension plan, the participant's accrued benefit at any point is the participant's present account balance.

(a) True

(b) False

47. Which of the following vesting schedules may a top-heavy qualified profit sharing plan use?

(a) 1 to 5 year graduated.

(b) 5-year cliff.

(c) 3 to 7 year graduated.

(d) 4 to 8 year graduated.

48. Which of the following clauses in a 401(k) plan can assist the plan in meeting the requirements of the ADP test?

(a) Attestation clause.

(b) No-Contest clause.

(c) Negative election clause. (d) Deferral plan clause.

49.Packlite Company has a defined benefit plan with 200 nonexcludable employees (40 HC and 160 NHC}. They are unsure if they are meeting all of their testing requirements. What is the minimum number of total employees that must be covered on a daily basis to conform with the requirements set forth

SO.Which of the following factors may affect a person's individual retirement planning?

1. Work life expectancy.

2. Retirement life expectancy.

3. Inflation.

4. Savings rate.

(a) 1 and 2.

(b) 2 and 3.

(c) 1, 3, and 4.

(d) All of the above.

mulitple choice