true or false

31. A SERP is used to meet the objective of bringing executive pension benefits up to an acceptable level. 32. A rabbi trust can contain an insolvency trigger that requires accelerated payments to executives if the company's net worth falls below a certain point. 33. The employer should buy an executive's surety bond in order to avoid unwanted tax consequences. 34. One problem with equity based compensation is that employees must treat all future gains as ordinary income. 35. Incentive stock options are more flexible than non-qualified stock options in regards to features. 36. If Sandy has a non-qualified stock option with an exercise price of $25 and she buys the stock when it has a value of $100 she will have $25 of ordinary income and the employer will get a deduction for $100. 37. Joey has an ISO with his company with the ability to purchase a stock for S40 per share. He exercises the ISO when the price is $60 per share. Joey will not need to pay any tax at the time of exercise if he does not sell the stock at the time of exercise. 38. With an ISO the employer is entitled to a deduction only when the participant sells the stock. 39. The most significant risk to the executive in a restricted stock plan is the risk of forfeiture of the stock. 40. When in a Phantom Stock plan, all of the payments to the executives will be counted as ordinary income tax. 41. A taxpayer can make deductible contributions to an IRA even if she only has passive income. 42. An excess contribution to an IRA is subject to a 50% excise tax. 43. A withdrawal from an IRA can be rolled over to another IRA as long as it occurs in 90 days. 44. Distributions from a traditional IRA to pay for qualifying education expenses will not be subject to the 10% Sec. 72(t) withdrawal excise tax. 45. Conversions from an IRA to a Roth IRA are generally tax free. 46. George maintains one Roth IRA. In 2011, he made his first contribution for 2010. In 2013, at age 60, George withdrew the entire account, which includes contributions and earnings. Since George has attained the age of 59 %, the entire account can be withdrawn without tax consequences. 47. A participant borrowing from an IRA is a prohibited transaction and the account stops being an IRA as of the first of the year. 48. A traditional IRA contribution is generally a better choice than a Roth IRA contribution for the taxpayer who expects to be in a much lower tax bracket upon retirement. 49. A Roth IRA conversion has the result of eliminating required minimum distributions during the life of the participant