Question
Please answer questions 6-10. 6) Generally, which of the following are contributory plans? 1. 401(k) and money purchase pension plans. 2. 401(k) and thrift plans.
Please answer questions 6-10.
6) Generally, which of the following are contributory plans? 1. 401(k) and money purchase pension plans. 2. 401(k) and thrift plans. 3.Thrift plans and ESOPs. 4. Money purchase pension plans and profit sharing plans.
Question 6 options:
a) 1, 2, 3, and 4. | |
b) 2 only. | |
c) 3 and 4. | |
d) 1 and 2. |
7) Tonya was fired from her ice-skating instructor position at Kerrigan, Inc after completing five years of service. Kerrigan has a 401(k) profit sharing plan with a dollar for dollar match up to 6% of compensation in which Tonya had an account balance of $50,000. Of that account balance, $20,000 was attributable to Kerrigan noncontributory contributions and $30,000 was attributable to the combination of Tonyas deferral contributions and the equivalent employer match on those deferral contributions. At this time, considering Tonya has terminated employment and that Kerrigans 401(k) profit sharing plan is not top-heavy and follows the least generous graduated vesting schedule permitted under PPA 2006, what is Tonyas vested account balance in the 401(k) profit sharing plan?
Question 7 options:
a) $44,000 | |
b) $45,000 | |
c) $46,000 | |
d) $43,000 |
8) A top-heavy defined benefit plan must use a vesting schedule which provides the employees with a vested benefit at least as rapidly as a 2 to 6 year graduated vesting schedule or a 3-year cliff vesting schedule.
Question 8 options:
a) True | |
b) False |
9) Ozark Washing Services, Inc. has a noncontributory qualified profit sharing plan with 310 employees in total, 180 who are nonexcludable (40 HC and 140 NHC). The plan covers 72 NHC and 29 HC. The NHC receive an average of 4.5% benefit and the HC receive 6.5%. Which of the following statements is (are) correct?
1.The company plan meets the ratio percentage test. 2.The company plan fails the average benefits test. 3.The plan must and does meet the ADP test.
Question 9 options:
a) 1 Only | |
b) 2 Only | |
c) Both 1 and 2 | |
d) 1,2, and 3 |
10) Blue Star Products, Inc. has a qualified plan that requires employees to meet one year of service and to be 21 years old before being considered eligible to enter the plan. Which of the following employees are not eligible?
1. Zac, age 18, who has worked full-time with the company for 3 years. 2. Dee, age 22, who has worked full-time with the company for 6 months. 3. Mandy, age 62, who has worked 500 hours per year for the past 6 years. 4. Harry, age 35, who has worked full-time with the company for 10 years.
Question 10 options:
a) 1 and 2 | |
b) 4 only | |
c) 3 and 4 | |
d) 1,2, and 3 |
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