True or False:

1. Traditional 401(k) plans can be funded entirely through salary reductions by employees, enabling employers to bear no additional cost for employee compensation.

2. A cash balance plan establishes a separate fund for each plan participant.

3. Defined benefit plans provide more benefit security than do age-weighted or cross-tested plans.

4. All group insurance programs offered to employees must comply with ERISA reporting and disclosure requirements.

5. A cross-tested plan uses a fixed age-weighted formula. The plan is designed to maximize benefits for a firms highly compensated employees while providing whatever is necessary for remaining employees to satisfy nondiscrimination regulations.

6. An employee cannot be covered under both a defined benefit and a defined contribution plan.

7. A self-employed person with less than 10 employees can use a money purchase plan to fund his or her own retirement.

8. Unlike a traditional IRA, a Roth IRA contribution is not restricted by active participation in an employers retirement plan.

9. An early distribution penalty can be assessed on Roth IRA withdrawals.

10. Account holders with more than one Roth IRA can treat them as separate accounts when calculating tax consequences of distributions from any of them.

11. A trust cannot provide for creditor protectioninsurance

12. Including a spendthrift clause is recommended for children with money management or substance abuse problems.