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HS326 > Plan Characteristics > Flashcards

Plan Characteristics Flashcards

1
Q

Pension Plans

A

Defined Benefit
Cash Balance
Target Benefit
Money Purchase

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2
Q

Profit Sharing Plans

A

Profit Sharing Plan
Stock Bonus
ESOP
401K
Roth 401k
Simple 401k
Safe Harbor 401k
Age Based Profit Sharing Plan

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3
Q

Non-Qualified Plans

A

SEP
SARSEP
Trad IRA
Roth IRA
Simple IRA
403b

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4
Q

Defined Benefit Plans

A

Defined Benefit + Cash Balance

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5
Q

Defined Contribution Plans

A

Target Benefit
Money Purchase
Profit Sharing Plan
Stock Bonus
ESOP
401K /Roth 401k/Safe Harbor 401k
Age Based Profit Sharing Plan

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6
Q

IRAs

A

SEP
SARSEP
Trad/ Roth/ Simple IRA

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7
Q

Requires an Actuary

A

Defined Benefit
Cash Balance
Target Benefit

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8
Q

Favors Older Participants

A

Defined Benefit
Target Benefit
Age Based Profit Sharing Plan

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9
Q

Requires PBGC Insurance

A

Defined Benefit
Cash Balance

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10
Q

SS Integration Allowed

A

All Four Pension Plans
Profit Sharing Plan
Stock Bonus
SEP

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11
Q

Require ADP/ACP Tests

A

401k Plan
Roth 401k Plan

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12
Q

Allow Employee Contributions

A

All Four 401k Plans
SARSEP
Trad IRA
Roth IRA
Simple IRA
403b

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13
Q

Pension Plan Characteristics

A
  1. Min. Funding Standards Apply
  2. Annuity distribution options required.
  3. Employer Stock Investment limited to 10%
  4. Qualified
  5. Must be est. by end of tax year
  6. 21 one and one rule
  7. Coverage Tested: Percentage/ Ratio/ Average benefit
  8. CAN invest in Life ins. and Collectibles
  9. Favorable tax treatment of lump sum distributions (10-yr avg/Cap gain/ NUA)
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14
Q

Profit Sharing Plan Characteristics

A
  1. Qualified
  2. Must be est. by end of tax year
  3. 21 one and one rule
  4. Coverage Tested: Percentage/ Ratio/ Average benefit
  5. CAN invest in Life ins. and Collectibles
  6. Favorable tax treatment of lump sum distributions (10-yr avg/Cap gain/ NUA)
  7. Contributions from ER must be substantial and recurring
  8. In-Service Withdrawals (different than a loan) Allowed
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15
Q

Non-Qualified “wanabe” characteristics

A
  1. In-Service Withdrawals (different than a loan) Allowed
  2. 100% immediate vesting of ER contributions
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16
Q

10% Early withdrawal Penalty Code

A

72(t)

17
Q

72(t) 10% exceptions

A
  • 59 & 1/2
  • death or disability
  • qualified birth or adoption (up to 5k)
  • med expenses in excess of 7.5% agi
  • Annuitized funds
18
Q

RMD Aggregation Allowed

A
  • IRAs
  • 403bs
19
Q

Designated Eligible Benes RMD Options

A
  1. Surviving spouse can rollover plan to ira in surviving spouses name. Delay RMDs until spouse is 72
  2. Non-spouse eligible benes can recv distributions over their remaining life expectancy
20
Q

Designated NON-Eligible Benes

A

Must distribute account within 10yrs

21
Q

No designated beneficiary

A
  • Death before RMDs begin - must fully distribute by 5yrs
  • death after beginning RMDs - RMDs continue on same schedule as deceased owner

HS326 (6 decks)

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