Question
The Children Dentistry Place is a successful fifteen-year-old professional firm with fiveemployees. Following is information regarding these employees (note their ages):Employees Age Salary Years of
The Children Dentistry Place is a successful fifteen-year-old professional firm with fiveemployees. Following is information regarding these employees (note their ages):Employees Age Salary Years of Service Position
Marie 55 $320,000 15 Part owner
Stan 55 $220,000 15 Part owner
Dan 35 $70,000 5 Assistan
Elli 30 $70,000 13 Assistant
Shannon 50 $60,000 12 Office manager
The firm is interested in establishing a defined contribution pension plan. Because the business is doing so well, the top employees want to maximize the contribution for themselves but not for the other employees
.a. Given the age of the top employees, what defined contribution pension plan would you suggest?
b. Using the plan you think will work best for them, show the contribution for each employee. Explain your answer
.c. What types of loans and distributions are permitted under the plan you designed?
d. Describe ERISA requirements regarding survivors.
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