Retirement Flashcards
(92 cards)
1
Q
Tandem plans typically involve ________ and ________?
A
- *Mon**ey purchase plans
- *Pro**fit sharing plans
2
Q
Which pension plans plan are subject to Pension Benefit Guaranty Corporation (PBGC) coverage?
A
- *Defi**ned benefit plans
- *Ca**sh balance pension plans
3
Q
CODA plans are also known as ________?
A
401k plans.
4
Q
How are Employment Stock Option Plan (ESOP) dividends taxed?
A
Ordinary income rates.
5
Q
Are loans permitted in a SIMPLE IRA?
A
- *No**.
- *IR**As do not permit loans.
6
Q
Pension plans have ________ funding formulas.
A
Fixed.
7
Q
Does Rule 72(t) apply to IRAs or to employer sponsored retirement plans?
A
- *Bot**h.
- *Avo**ids the 10% early withdraw penalty.
8
Q
What determines if an individual is an active participant in their retirement plan?
A
- *I**f the individual contributed to the plan.
- *I**f the individual’s employer contributed on the individual’s behalf.
9
Q
What’s the early withdraw penalty for a SIMPLE IRA?
A
25%.
10
Q
Are 457 plans eligible for catch up contributions?
A
Yes.
11
Q
What are the requirements for an employee to be eligible for a SEP plan?
A
- *Ag**e 21.
- *Rece**ived at least $650 dollars in compensation.
- *Wor**ked for the organization for 3 of the last 5 years.
12
Q
What percent of company stock must an ESOP own after the creation?
A
30%.
13
Q
What protection is offered for a client that rolls a 401(k) into an IRA?
A
- *Bankr**uptcy protection.
- *ERI**SA would provide protection while it is still a 401(k).
14
Q
How often does an actuary required to review a defined benefit plan?
A
- *Annua**lly.
- *A**n actuary calculates the contribution calculation annually.
15
Q
Profit sharing plans are funded by the ________?
A
- *Emplo**yer.
- *I**f there is a 401(k) component attached to a profit sharing plan, the employee can contribute to the 401(k).
16
Q
Qualified plans offer ________ protection.
A
Creditor protection via ERISA.
17
Q
What is the vesting schedule for Safe Harbor 401(k) plans?
A
Immediate vesting.
18
Q
Integration levels cannot be higher than ________.
A
The social security wage base.
19
Q
How long can an employee be held out of a SEP?
A
- *3** years.
- *Mu**st also be age 21 to participate.
20
Q
What is a potential benefit of a profit-sharing plan that uses permitted disparity?
A
Allows for higher contribution rates.
21
Q
How long does a client have to elect 83(b)?
A
30 days after grant.
22
Q
Regarding catch-up contributions, which plans permit an additional contribution if the employee has 15 years of service?
A
403(b) plans.
23
Q
What options does an employer have regarding SIMPLE contributions?
A
- *2**% flat contribution for all eligible employees
- *3**% match (100%).
24
Q
Do allocation formulas need to be definite or indefinite in pension plans?
A
Definite.
25
**A** **quali**fied **distri**bution **fr**om **a** **Ro**th **IR**A **mu**st **me**et **th**e **5-y**ear **te**st **a**s **we**ll **a**s **\_\_\_\_**\_\_\_\_ **(**4 **scenar**ios).
* *Ag**e **59**.5
* *Dea**th
* *Disab**ility
* *Fir**st **ti**me **ho**me **buy**er **(u**p **t**o **$10,**000)
* *Ta**ke **ti**me **t**o **under**stand **the**se **in-d**epth **a**s **th**ey **ar**e **lik**ely **t**o **b**e **test**ed.
26
**Wh**at **ty**pe **o**f **pl**an **perm**its **a**n **addi**tion **catc**h-up **provi**sion **i**n **th**e **fin**al **3** **yea**rs **bef**ore **nor**mal **retir**ement **ag**e?
* *Ag**e **59**.5
* *Dea**th
* *Disab**ility
* *Fir**st **ti**me **ho**me **buy**er **(u**p **t**o **$10,**000)
* *Ta**ke **ti**me **t**o **under**stand **the**se **in-d**epth **a**s **th**ey **ar**e **lik**ely **t**o **b**e **test**ed.
27
**Wh**at **i**s **th**e **empl**oyee **lim**it **fo**r **a** **busi**ness **th**at **wis**hes **t**o **estab**lish **a**n **SIM**PLE **IR**A?
**N**o **mo**re **th**an **10**0 **emplo**yees.
28
**I**f **a** **clie**nt’s **beg**ins **tak**ing **Soc**ial **Secu**rity **bene**fits **3**6 **mon**ths **bef**ore **the**ir **nor**mal **retir**ement **ag**e, **ho**w **mu**ch **ar**e **bene**fits **redu**ced?
**20**%.
* *I**t **i**s **impor**tant **t**o **kn**ow **ho**w **t**o **calcu**late **redu**ced **Soc**ial **Secu**rity **benef**its. **I**f **wit**hin **th**e **fir**st **3**6 **mont**hs, **sim**ply **mult**iply **th**e **num**ber **o**f **mon**ths **b**y **5/**9 **(o**r **.55**56) **t**o **arr**ive **a**t **th**e **reduc**tion **percen**tage. **Th**e **maxi**mum **reduc**tion **wit**hin **th**e **36-m**onth **win**dow **i**s **20**%. **I**f **i**t **i**s **mo**re **th**an **3**6 **mont**hs, **mult**iple **th**e **num**ber **o**f **mon**ths **ov**er **3**6 **mon**ths **b**y **5/**12 **(.41**67) **an**d **ad**d **th**at **perce**ntage **t**o **20**%.
* *Exam**ple: **a** **cli**ent **th**at **tak**es **Soc**ial **Secu**rity **bene**fits **4**5 **mon**ths **bef**ore **nor**mal **retir**ement **ag**e **wou**ld **se**e **a** **23.**75% **reduc**tion **i**n **bene**fits **(4**5 **–** **3**6 **=** **9**) **(**9 **\*** **5/**12 **=** **3.7**5) **(3.**75 **+** **2**0 **=** **23.7**5).
29
**I**f **a** **cli**ent **contri**butes **t**o **a** **SE**P, **ar**e **th**ey **consi**dered **t**o **b**e **a**n **act**ive **partic**ipant?
**Ye**s.
30
**Wh**en **do**es **th**e **hold**ing **per**iod **beg**in **fo**r **NQS**Os?
**A**t **exerc**ise.
31
**Wh**at **i**s **th**e **pena**lty **fo**r **ear**ly **distri**bution **fr**om **a**n **ESO**P?
**10**%.
32
**Wh**at **ty**pe **o**f **plan**(s) **ca**n **incl**ude **mo**re **th**an **10**% **o**f **empl**oyer **securi**ties?
**Mo**st **pro**fit **shar**ing **pla**ns.
33
**Ag**e **o**f **retir**ement **mu**st **b**e **speci**fied **i**n **whi**ch **ty**pe **o**f **pla**n?
**Defi**ned **Bene**fit **pla**n.
34
**Wh**at **i**s **th**e **non-el**ective **contri**bution **%** **fo**r **SIM**PLE **IRA**s?
**2%**.
35
**Wh**en **do**es **a**n **empl**oyer **recog**nize **a** **deduc**tion **fo**r **NQS**Os?
**A**t **exerc**ise.
36
**Wh**at **ar**e **tw**o **scena**rios **th**at **wou**ld **cau**se **a**n **IS**O **t**o **expi**re?
* *1**0 **yea**rs **fr**om **gra**nt.
* *3** **mon**ths **fr**om **retirement/t**ermination.
37
**Regar**ding **SIM**PLE **IRA**s, **wh**at **i**s **th**e **pena**lty **i**f **a**n **empl**oyee **tak**es **a** **distri**bution **wit**hin **2-ye**ars **fr**om **partici**pating **i**n **th**e **pla**n?
**25**%.
38
**Whi**ch **pla**ns **ve**st **immedi**ately?
* *SE**Ps
* *SIM**PLE **IR**As
* *Sa**fe **Har**bor **401**(k) **pla**ns
39
**I**n **a** **Defi**ned **Bene**fit **pla**n, **a** **hig**her **ret**urn **o**n **invest**ments **wit**hin **th**e **pl**an **ma**y **le**ad **t**o **a** **\_\_\_\_\_**\_\_\_?
* *Low**er **requ**ired **contri**bution **fr**om **th**e **emplo**yer.
* *Alterna**tively, **low**er **inves**tment **retu**rns **wit**hin **th**e **pl**an **ma**y **requ**ire **a** **lar**ger **contri**bution **fr**om **th**e **emplo**yer.
40
**Wh**at **ty**pe **o**f **pl**an **ca**n **b**e **us**ed **t**o **sk**ew **contrib**utions **i**n **fav**or **o**f **old**er, **hig**hly **compen**sated **emplo**yees?
**Cross-**tested **profit-**sharing **pla**ns.
41
**Wh**at **tw**o **typ**es **o**f **ass**ets **ca**n **li**ve **i**n **a** **403(**b)?
* *Mut**ual **fun**ds
* *Annui**ties
42
**Wh**at **i**s **consi**dered **t**o **b**e **ear**ned **inc**ome **fo**r **IR**A **contri**bution **purpo**ses?
* *W**2 **inc**ome
* *Sche**dule **C** **inc**ome
* *Alim**ony **(f**or **divo**rces **final**ized **o**n **o**r **bef**ore **Dece**mber **31s**t, **201**8)
* *Gene**ral **Partne**rship **inc**ome
43
**Ar**e **in-se**rvice **distrib**utions **avail**able **wit**hin **a** **45**7 **pla**n?
**Ye**s.
44
**ESO**Ps **an**d **\_\_\_\_**\_\_\_\_ **ha**ve **unrest**ricted **inves**tment **i**n **empl**oyer **securi**ties.
**Tradit**ional **profit-**sharing **pla**ns.
45
**Unfu**nded **defe**rred **compen**sation **agree**ments **ma**ke **a**n **execu**tive **a** **\_\_\_\_**\_\_\_\_ **o**f **th**e **comp**any.
**Gene**ral **cred**itor **o**f **th**e **comp**any.
46
**D**o **SIM**PLE **401**(k) **pla**ns **per**mit **loa**ns?
* *Ye**s.
* *SIM**PLE **IR**As **d**o **no**t.
47
**A** **\_\_\_\_**\_\_\_\_ **ye**ar **ol**d **empl**oyee **wi**th **\_\_\_\_**\_\_\_\_ **yea**rs **o**f **serv**ice, **ca**n **mand**ate **th**at **a**n **empl**oyer **diver**sity **hold**ing **wit**hin **the**ir **ESO**P.
* *55-yea**r-old.
* *1**0 **yea**rs **o**f **serv**ice.
48
**Wh**at **wou**ld **yo**u **sugg**est **t**o **some**one **wh**o **ow**ns **a** **Ro**th **401**(k) **bu**t **i**s **n**o **lon**ger **mak**ing **contrib**utions **t**o **th**e **pla**n?
**Potent**ially **ro**ll **th**e **401**(k) **in**to **a** **Ro**th **IR**A. **Th**is **wi**ll **avo**id **requ**ired **manda**tory **distrib**utions.
49
**Ta**x **Shelt**ered **Annui**ties **(TS**As) **ar**e **al**so **kno**wn **a**s **\_\_\_\_\_**\_\_\_?
**403**(b) **pla**ns.
50
**Wh**at **ty**pe **o**f **pl**an **wou**ld **b**e **a** **via**ble **cho**ice **fo**r **a** **52-yea**r-old, **self-em**ployed **indiv**idual **th**at **wan**ts **t**o **maxi**mize **the**ir **retir**ement **pl**an **contrib**utions?
**A** **401(**k).
**SE**Ps **&** **SIMP**LEs **d**o **no**t **ha**ve **catc**h-up **contrib**utions. **B**e **care**ful **wi**th **the**se **typ**es **o**f **quest**ions **a**s **on**e **o**r **tw**o **wor**ds **i**n **th**e **ques**tion **ca**n **cha**nge **th**e **corr**ect **answ**er. **I**f **th**e **ques**tion **wou**ld **ha**ve **ask**ed **fo**r **th**e **be**st **pl**an **fo**r **a** **45-yea**r-old **indivi**dual, **a** **SE**P **o**r **SIM**PLE **ma**y **ha**ve **ma**de **mo**re **sen**se **du**e **t**o **th**e **ea**se **o**f **set**up **an**d **low**er **adminis**trative **cos**ts.
51
**Wh**at **ar**e **tw**o **quest**ions **yo**u **sho**uld **as**k **your**self **wh**en **determ**ining **i**f **a** **Ro**th **distri**bution **i**s **quali**fied?
* *Ha**s **th**e **IR**A **be**en **op**en **fo**r **5** **yea**rs?
* *I**s **the**re **a** **trigg**ering **eve**nt **(a**ge **59.**5, **dea**th, **fir**st **ti**me **ho**me **purch**ase, **disabi**lity)?
52
**Wh**at **i**s **th**e **Ro**th **IR**A **inc**ome **phas**eout **i**n **202**2?
* *Sin**gle **$129k-**$144k
* *Marr**ied **$204k-**$214k
* *Whi**le **yo**u **sho**uld **famili**arize **your**self **wi**th **th**e **phas**eout **numb**er, **don**’t **spe**nd **ti**me **memor**izing **the**m. **Th**ey **ar**e **prov**ided **i**n **th**e **exa**m.
53
**I**n **a** **Tar**get **Bene**fit **Pla**n, **ho**w **i**s **th**e **retir**ement **bene**fit **determ**ined?
**It**’s **bas**ed **o**n **th**e **val**ue **o**f **th**e **partici**pant’s **acco**unt **a**t **retire**ment.
54
**Whi**ch **pla**ns **ar**e **no**t **subj**ect **t**o **th**e **top-h**eavy **rul**es?
* *SIM**PLE **401**(k) **pla**ns
* *Sa**fe **Har**bor **401**(k) **pla**ns
55
**I**n **a** **SE**P, **a**n **empl**oyee **ca**n **b**e **excl**uded **fo**r **u**p **t**o **\_\_\_\_**\_\_\_\_ **yea**rs.
**3**.
56
**Wh**en **recomm**ending **a** **retir**ement **pl**an **t**o **a** **busin**ess, **wh**at **sho**uld **yo**u **ke**ep **i**n **min**d?
* *Stabi**lity **o**f **cashf**low.
* *Argu**ably **th**e **mo**st **impor**tant **asp**ect **t**o **consi**der.
57
**Mo**st **sma**ll **retir**ement **pla**ns **wi**ll **event**ually **bec**ome **\_\_\_\_**\_\_\_\_ **ov**er **tim**e.
**To**p **hea**vy.
58
**Wh**at **ca**n **b**e **us**ed **t**o **rect**ify **a**n **AD**P **test**ing **fail**ure?
**A** **quali**fied **non-el**ective **contri**bution **(QNE**C).
59
**Wh**en **ask**ed **t**o **calcu**late **RM**Ds **whi**ch **li**fe **expec**tancy **cha**rt **sho**uld **yo**u **us**e?
* *Sing**le.
* *Yo**u **wou**ld **us**e **a** **joi**nt **li**fe **expec**tancy **i**f **th**e **spo**use **we**re **lis**ted **a**s **th**e **benefi**ciary **an**d **i**s **1**0 **yea**rs **youn**ger **th**an **th**e **acco**unt **hold**er.
60
**Wou**ld **a**n **outs**ide **contr**actor **work**ing **fo**r **a** **busi**ness **b**e **elig**ible **fo**r **incen**tive **sto**ck **opti**ons **(IS**Os) **o**r **non-qua**lified **sto**ck **opti**ons **(NQS**Os)?
* *NQS**Os **onl**y.
* *IS**Os **ca**n **on**ly **b**e **gran**ted **t**o **emplo**yees.
61
**Wh**at **i**s **a**n **excep**tion **t**o **star**ting **RMD**s?
**I**f **yo**u **1**) **ar**e **sti**ll **empl**oyed **wi**th **th**e **comp**any **th**at **ow**ns **th**e **pla**ns **an**d **2**) **yo**u **d**o **no**t **ow**n **5**% **o**r **mo**re **o**f **th**e **comp**any.
62
**Wh**en **mo**re **th**an **\_\_\_\_\_**\_\_\_% **o**f **th**e **pl**an **ass**ets **ar**e **wi**th **\_\_\_\_\_**\_\_\_, **th**e **pl**an **i**s **desig**nated **a**s **bei**ng **to**p **hea**vy.
* *60**%.
* *Ke**y **emplo**yees.
63
**Non-qua**lified **sto**ck **opti**ons **gene**rate **W**2 **inc**ome **wh**en **\_\_\_\_\_**\_\_\_.
**Th**ey **ar**e **exerc**ised.
64
**Ho**w **mu**ch **mon**ey **ca**n **b**e **pul**led **ou**t **o**f **a** **quali**fied **pl**an **fo**r **hig**her **educa**tion **an**d **avo**id **pena**lty?
* *$0**.
* *IR**As **onl**y. **So**me **excep**tions **ar**e **overla**pping, **an**d **so**me **ar**e **spec**ific **t**o **IR**As **O**R **quali**fied **pla**ns. **Ma**ke **su**re **yo**u **kn**ow **whi**ch **bel**ong **t**o **eac**h.
65
**\_\_\_\_**\_\_\_\_ **d**o **no**t **per**mit **in-se**rvice **withd**raws.
**Pens**ion **pla**ns.
66
**Wh**en **ask**ed **fo**r **a** **pl**an **recomme**ndation **th**at **all**ows **fo**r **a**n **empl**oyee **t**o **sa**ve **fo**r **the**ir **ow**n **retire**ment, **wh**at **sho**uld **yo**u **consi**der?
**I**f **th**e **pl**an **yo**u **ar**e **recomm**ending **ha**s **a** **defe**rral **opt**ion **(401**(k), **403(**b), **SIMP**LE, **etc**.).
**Pa**y **clo**se **atten**tion **t**o **recomme**ndation **quest**ions. **The**re **ar**e **typic**ally **1** **o**r **2** **wor**ds **wit**hin **th**e **sent**ence **th**at **ca**n **cha**nge **th**e **outc**ome. **Th**e **CF**P® **Ex**am **all**ows **yo**u **t**o **highl**ight **are**as **wit**hin **th**e **quest**ion, **us**e **th**at **t**o **yo**ur **advan**tage **an**d **highl**ight **trig**ger **wor**ds **th**at **ar**e **impor**tant **t**o **ke**ep **to**p **o**f **min**d.
67
**Wh**en **d**o **emplo**yees **beg**in **accr**uing **benef**its?
**A**t **th**e **pl**an **entr**ance **dat**e.
**Yo**u **ma**y **se**e **answ**ers **su**ch **as**: **1**) **aft**er **compe**ting **the**ir **fir**st **9**0 **day**s, **2**) **on**ce **th**ey **rea**ch **ag**e **eligib**ility, **3**) **a**t **the**ir **2-y**ear **wo**rk **annive**rsary, **et**c. **Whi**le **th**ey **lo**ok **li**ke **th**ey **cou**ld **b**e **corr**ect, **a**n **empl**oyee **on**ly **beg**ins **accr**uing **wh**en **a**t **the**ir **pl**an **entr**ance **dat**e. **Reme**mber **th**at **a**n **elig**ible **empl**oyee **ca**n **on**ly **b**e **he**ld **ou**t **o**f **a** **pl**an **fo**r **a** **maxi**mum **o**f **6** **mon**ths **(s**o **pla**ns **typic**ally **ha**ve **tw**o **entr**ance **date**s).
68
**Ca**n **401**(k) **pla**ns **b**e **conve**rted **t**o **Sa**fe **Har**bor **401**(k) **pla**ns?
**Ye**s, **vi**a **a** **for**mal **pl**an **amend**ment.
69
**Ca**n **401**(b) **pla**ns **per**mit **i**n **serv**ice **withd**raws?
**Ye**s.
70
**Whi**ch **pens**ion **pl**an **ha**s **a** **guara**nteed **ret**urn **associ**ated?
**Ca**sh **Bala**nce **Pens**ion **Pla**ns.
71
**SE**Ps **proh**ibit **\_\_\_\_\_**\_\_\_?
* *Forfei**tures.
* *Emplo**yees **ar**e **immedi**ately **vest**ed.
72
**Defi**ned **contri**bution **pla**ns **can**not **us**e **th**e **\_\_\_\_**\_\_\_\_ **meth**od.
**Off**set **meth**od.
73
**Sa**fe **Har**bor **401**(k) **pla**ns **ar**e **\_\_\_\_**\_\_\_\_ **t**o **pa**ss **th**e **AD**P **tes**t.
**No**t **requi**red.
74
**Sto**ck **bon**us **pla**ns **ar**e **no**t **subj**ect **t**o **\_\_\_\_**\_\_\_\_ **a**t **withd**raw.
**20**% **withho**lding.
75
**Ar**e **part**ial **RM**Ds **permi**tted **th**e **ye**ar **a**n **indiv**idual **tur**ns **72**?
* *Ye**s.
* *Th**e **fu**ll **amo**unt **o**f **th**e **RM**D **mu**st **b**e **tak**en **b**y **Apr**il **1s**t **o**f **th**e **follo**wing **yea**r.
76
**Wha**t’s **th**e **bene**fit **o**f **a** **401**(k) **ov**er **a** **403(**b)?
**403(**b)s **usua**lly **ha**ve **a** **low**er **barr**ier **t**o **ent**ry.
77
**Wh**o **i**s **respon**sible **fo**r **tak**ing **a**n **RM**D?
**Th**e **plan**ner **a**s **we**ll **a**s **th**e **clie**nt.
78
**On**ly **\_\_\_\_**\_\_\_\_ **pla**ns **us**e **th**e **off**set **meth**od.
**Defi**ned **Bene**fit **pla**ns.
79
**Ca**n **a** **cli**ent **util**ize **a** **hard**ship **with**draw **wh**en **the**re **ar**e **oth**er **fun**ds **avail**able?
**No**.
80
**Ho**w **mu**ch **d**o **soc**ial **secu**rity **bene**fits **incr**ease **eve**ry **ye**ar **a**n **indiv**idual **dela**ys?
**8**% **unt**il **ag**e **70**.
81
**Th**e **50/**40 **te**st **i**s **on**ly **appli**cable **fo**r **\_\_\_\_**\_\_\_\_ **pla**ns.
**Defi**ned **bene**fit **pla**ns.
82
**Wh**at **i**s **th**e **ma**x **lo**an **permi**tted **fr**om **a** **SIM**PLE **IR**A **fo**r **a** **50-yea**r-old **wi**th **1**5 **yea**rs **o**f **contri**bution **hist**ory?
* *$0**.
* *SIM**PLE **401**(k) **pla**ns **per**mit **loa**ns, **no**t **SIM**PLE **IRA**s.
83
**Loa**ns **fr**om **quali**fied **pla**ns **typic**ally **mu**st **b**e **pa**id **ba**ck **wit**hin **\_\_\_\_**\_\_\_\_ **yea**rs.
**5** **yea**rs.
84
**Wh**at **i**s **th**e **diffe**rence **betw**een **SER**Ps **an**d **exc**ess **bene**fit **pla**ns?
**SER**Ps **ign**ore **cove**red **compens**ations **limi**ts.
85
**Hard**ship **withd**raws **ar**e **sti**ll **\_\_\_\_\_**\_\_\_.
**Subj**ect **t**o **a** **10**% **ear**ly **with**draw **pena**lty.
86
**Wh**at **i**s **th**e **maxi**mum **contri**bution **a**n **empl**oyee **ca**n **ma**ke **t**o **a** **SE**P **IR**A?
* *$0**.
* *SE**Ps **on**ly **per**mit **empl**oyer **contrib**utions.
87
**Ho**w **ar**e **distrib**utions **fr**om **a** **Tradit**ional **IR**A **trea**ted **i**f **the**re **i**s **exis**ting **bas**is **wit**hin **th**e **acco**unt?
* *Pro-r**ata.
* *Ass**ume **yo**u **ha**ve **a** **Tradit**ional **IR**A **wor**th **$50,**000 **an**d **$10,**000 **o**f **th**at **amo**unt **i**s **bas**is. **A** **with**draw **o**f **$20,**000 **wou**ld **incl**ude **a** **$4,**000 **ret**urn **o**f **capi**tal **an**d **a** **$16,**000 **taxa**ble **distri**bution **($10,000**/$50,000 **=** **.2**0. **$20,**000 **\*** **.2**0 **=** **$4,0**00).
88
**I**n **wh**at **situa**tion **wou**ld **a**n **IS**O **gi**ve **a**n **empl**oyer **a** **ta**x **deduc**tion?
**I**f **i**t **beco**mes **a** **disqua**lified **dispos**ition.
89
**Ca**n **IS**Os **o**r **NQS**Os **b**e **gift**ed?
**NQS**Os **onl**y.
90
**Fail**ure **t**o **payb**ack **a** **401**(k) **lo**an **und**er **th**e **agr**eed **up**on **provi**sions **i**s **consi**dered **t**o **b**e **a** **\_\_\_\_\_**\_\_\_?
* *Taxa**ble **distrib**ution.
* *10**% **pena**lty **i**f **und**er **59.**5.
91
**Whi**ch **pla**ns **te**nd **t**o **fav**or **old**er **partici**pants?
* *Defi**ned **bene**fit **pla**ns
* *Tar**get **bene**fit **pla**ns.
* *Age-b**ased **profit-**sharing **pla**ns.
92
**Whi**ch **ty**pe **o**f **busi**ness **i**s **exe**mpt **fr**om **PB**GC **cover**age?
**Profes**sional **serv**ice **corpor**ation **wi**th **few**er **th**an **2**5 **emplo**yees.
