Plan Types

Question 1

Pension plans have ________ contribution

Answer 1

required

Question 2

Pension Plans are subject to what rules?

Answer 2

Qualified Joint and Surivor

Question 3

What are examples of pension plans?

Answer 3

Defined Benefit, Cash Balance and Money Purchase

Question 4

Who bears the risk of gains and losses for a defined contribution plan?

Answer 4

Employees

Question 5

Ultimate benefit is based on the ____ of the account.

Answer 5

value

Question 6

Defined contribution plans set up accounts for ____ participant.

Answer 6

each

Question 7

Participants give ____ in some defined contribution plans.

Answer 7

direction

Question 8

Non-pension plans have ___ contributions.

Answer 8

discretionary

Question 9

Non-pension plans allow for employee ___.

Answer 9

deferrals

Question 10

Can a non-pension plan be exempt from Joint and Survivor rules?

Answer 10

Yes

Question 11

Can pension plans be exempt from Qualified Joint and Survivor rules?

Answer 11

No

Question 12

What are some common non-pension plans?

Answer 12

Profit-Sharing and Stock Bonus Plans

Question 13

Are 401(k) plans profit-sharing or stock bonus plans?

Answer 13

Profit-sharing

Question 14

What are 4 highlights of a SEP and SIMPLE IRA plans?

Answer 14

1: contributions are fully vested at all times
2: limited government filings
3: no employer restrictions or distributions
4: IRA plans are not able to allow loans

Question 15

Do SEP plans allow employee deferrals?

Answer 15

No

Question 16

How many employees must a business have to qualify for a SIMPLE IRA plan?

Answer 16

Under 100

Question 17

Eligibility for a SIMPLE IRA

Answer 17

no age 21, no 1000 hour requirements, must earn more than $5,000 in prior two years