Question 19 (1 point)

Porter has reached retirement age after working for the same employer for 25 years. His employer has a defined benefit pension plan for which the PBGC has assumed financial responsibility. Disregarding Porter's actual accrued benefit in the plan, what is the maximum annual benefit Porter could receive under PBGC administration of the plan?

Question 19 options:

1)

$60,132

2)

$210,000

3)

$53,000

4)

$265,000

Question 20 (1 point)

Consider the following employee information for ABC Company: Employee; Prior Year Compensation; Ownership % 1 $150,000; 70% 2 $127,000; 4% 3 $75,000; 6% 4 $80,000; 2% In the year 2015, which of these employees are highly compensated for purposes of the qualified plan coverage rules?

Question 20 options:

1)	1, 2 and 3

2)

1 and 4

3)

3 and 4

4)	2, 3 and 4

Question 21 (1 point)

Under the minimum distribution rules and the Uniform Lifetime Table, Jason was required to take a minimum distribution of $10,000 for last year from his IRA. However, a distribution of only $8,000 has been made. What is the dollar amount of the penalty that may be assessed in this situation?

Question 21 options:

1)

$1,000

2)

$2,000

3)

$4,000

4)

$5,000

Question 22 (1 point)

Which of the following persons may receive a Social Security benefit as a survivor of the fully insured worker? 1 A dependent parent age 62 or over 2 An unmarried dependent child under age 19 and still in high school 3 A dependent disabled child who was disabled before age 22

Question 22 options:

1)	1, 2 and 3

2)

1 and 2

3)

1 and 3

4)

2 and 3

Question 23 (1 point)

Which of the following statements regarding the conversion of a traditional IRA consisting entirely of deductible contributions and earnings to a Roth IRA is(are) CORRECT? 1 The converted amount is treated as a taxable distribution from the traditional IRA. 2 The 10% premature penalty applies if the owner is not at least 59 years old. 3 Taxpayers who are age 70 and older may not convert a traditional IRA to a Roth IRA. 4 If the converted assets from the traditional IRA will not remain in the Roth IRA for a relatively long time, conversion is generally advisable.

Question 23 options:

1)

1 only

2)	1, 2 and 4

3)	1, 2, 3 and 4

4)

2 and 3

Question 24 (1 point)

In which of the following plans would you typically find a lumpsum distribution that may qualify for favorable income tax treatment?

Question 24 options:

1)	A profitsharing plan

2)	A SEP plan

3)	A traditional defined benefit pension plan

4)	A Section 403(b) plan

Question 25 (1 point)

Which of the following statements regarding a cash balance pension plan are CORRECT? 1 It is a defined benefit pension plan with a guaranteed interest rate credit. 2 Funds contributed to the plan are typically invested more aggressively than required to achieve the guaranteed interest rate credit. 3 The employer assumes the risk of investment performance for the employee. 4 An increase in plan contributions may be necessary because of required PBGC insurance coverage.

Question 25 options:

1)	1, 2, 3 and 4

2)

1 and 2

3)

2 and 4

4)	2, 3 and 4