Serenity sponsors a defined contribution plan. Mary, who is age 37 , has compensation of $150,000 for the year. Serenity has made a $20,000 profit sharing plan contribution for Mary and $6,000 of plan forfeitures were allocated to Mary's profit sharing plan during the year. How much can Mary defer into her CODA plan (401(k) plan) for 2022? $20,500. $25,000. $32,000. $37,000. Qualified plans must satisfy many tests to maintain qualified status. Which of the following is correct regarding coverage tests? I. Defined benefit plans must pass one of the three tests and the 50/40 test. II. Stock bonus plans must satisfy one of three coverage tests only. III. Employees who do not meet the eligibility requirements are still included in the determination of at least one of the coverage tests. IV. Coverage testing never includes leased employees as part of the calculation. I \& || Only II, III, \& IV & III \& IV only Which of the following is NOT an example of a qualified retirement plan? 401(k) Plan 457(b) Plan ESOP Thrift Plans Dallas Cownoys Corp. sponsors a 401(k) profit sharing plan. The plan does not have any employer match, but since this was a top heave plan, the company did make noncontributory employer contributions. Greta quit today after six years. She has come to you to determine how much of her retirement balance she can take with her. The plan uses the least generous graduated vesting schedule available. What is Greta's vested account balance if she has been a participant for 57 months? $11,200. $16,800. $22,400. 28,000 Texan Inc. has 500 eligible employees. The company sponsors a defined benefit pension plan but is unsure if they are meeting all of their testing requirements. How many employees (the minimum) must be covered by Texan Inc.'s defined benefit pension plan for the plan to conform with ERISA? 250. 50. 200. 20. Oscorp has 200 total employees. Of the 200,150 of which are considered non-excludable employees. Furthermore, 10 employees are highly compensated (HC). Of the 10HC employees, seven are covered under Oscorp's qualified plan. Additionally 100 of the 140 non-highly compensated employees are also covered under Oscorp's qualified plan. The average accrued benefits for the highly compensated is 3% while the average accrued benefit for the nonhighly compensated is 1.5%. Which of the following statements is true regarding coverage? 1. The plan passes the ratio percentage test. 2. The plan passes the average benefits test. 1 only. 2 only. Both 1 and 2. Neither 1 nor 2. Which of the following people would be considered a highly compensated employee for 2022 ? 1. Roger, a 2% owner whose salary last year was $172,500. 2. Miranda, a 6% owner whose salary was $53,700 for the last five years. 3. Brock, an officer, who earned $117,295 last year and is the sixth highest paid employee of 96 employees. 4. Cardi, a 0.5% owner who earned $129,000 last year and is in the top 20% of paid employees. 1 and 2. 1, 2, and 4. 1, 3, and 4. 1, 2, 3, and 4 . Avengers Inc. sponsors a unique profit-sharing plan. This plan requires employees to complete one year of service and be 21 years old before entering the plan. The plan also excludes all commissioned sales people and all other allowable exclusions allowed under the IRC. Which of the following employees could be excluded? 1. Seth, age 20 , who works in administration and has been with the company for 32 months. 2. Lisa, a commissioned sales person working in the Houston office. She is 37 years old and has been with the company for 3 years. 3. Rusty who works as the lead foreman in the company factory. He is 39 and has been with the company for 12 years. 1 only. 3 only. 1 and 2. 1, 2 and 3. Question 5 0.5pts Genome Inc. has the following coverage under its qualified plan. 1. Lacy, had employee with compensation of $37,500 and is 4.5% owner of the company. 2. Martha, an employee who earned a total of $197,475 last year. She was highest paid individual and also owns 3.3% of the company stock. 3. Randi, the chief operating officer, who earned a total of $163,775 last year, but was in the top 20% of highest paid employees. Assuming the company made the 20% election when determining who is highly compensated, which of the following statements is correct? Lacy and Martha are both key employees. Martha is a key employee, but Lacy is not. Randi is a key employee, but not a highly compensated employee. Martha and Randi are key employees Which of the following vesting schedules may a top-heavy qualified cash balance plan use? 2 to 6 year graduated. 3-year cliff. 3 to 7 year graduated. 5 year cliff