Question 1

1. Which one of the following is true about employer contributions into a money purchase plan?

   	a.	contributions cannot exceed 30% of an employee's compensation
   	b.	in 2011, the maximum dollar amount of annual contributions to an employee's account cannot exceed $50,000
   	c.	plan contributions go into a pooled account rather than into individual employee accounts
   	d.	plan benefits accumulate in individual employee accounts which will be available at retirement or termination of employment

2.5 points

Question 2

1. Which one of the following provides the greatest amount of flexibility for employer profit sharing plan contributions?

   	a.	a discretionary provision
   	b.	a formula provision
   	c.	a money purchase paired plan provision
   	d.	a target benefit provision

2.5 points

Question 3

1. Qualified plans require that the purchase of life insurance be governed by what are described as "incidental limits". What is the limitation on purchasing life insurance in a profit sharing plan?

   	a.	all amounts in the plan may be used
   	b.	all amounts that have been in the plan for a least two years may be used
   	c.	no amount of plan assets may be used
   	d.	no more than 50% of plan assets may be used