Financial Planning Questions

Published on December 2016 | Categories: Book Excerpts | Downloads: 64 | Comments: 0 | Views: 422
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Financial Planning Questions Click Link Below To Buy: http://hwcampus.com/shop/coyne-messina-articles-part-2-statistical-assessment/ Profit-sharing plans can be designed to allow employees to withdraw funds from participant accounts as early as 2 years after they were contributed by the employer assuming that the employee has worked for the employer for at least 5 years. True False The employer must have current or accumulated profits in order to make contributions to a profit-sharing plan. True False A 401(k) provides an employee the ability to save for his or her own retirement, but it does not permit the employer to contribute. True False Employee salary deferral contributions to a 401(k) plan are always 100 percent immediately vested. True False Under the safe harbor rules, a withdrawal to pay a child’s college tuition is considered a safe-harbor event. True False Hardship withdrawals are a subset of the broader safe harbor events category. True False In 2014 and 2015, Sally owns 6 percent of the employer's stock and earns $65,000. Sally will be considered a highly compensated employee for purposes of the actual deferral percentage test for 2015. True False An employer that makes one of the qualifying safe-harbor contributions to a 401(k) plan does not have to satisfy the ADP test. True False One of the advantages of receiving a distribution in stock from a stock bonus plan or an ESOP is that the unrealized appreciation is not taxed until the stock is sold. True False A candidate for an ESOP would like to create a market for his or her shares of the company and possibly leverage the purchase of employer stock using a loan that can increase the employer's deductible contribution beyond the normal threshold for other plan types. True False A simplified employee pension (SEP) plan is a retirement plan that uses an IRA as the funding instrument. True False A SEP cannot contain a loan provision. True False A candidate that has a large number of part-time employees should choose a SEP because it can be designed to exclude part-time employees. True False An employer can sponsor both a SIMPLE and a money-purchase pension plan. True False The employer who has few rank-and-file employees interested in participating in the plan and a modest contribution budget should consider the SIMPLE over the 401(k) plan. True False All those who receive payment for services from a qualified tax-exempt organization or public school are considered eligible employees for purposes of making contributions to the organization's 403(b) plan. True False Full-time employees willing to defer at least $200 generally have to be eligible to make salary deferrals under a 403(b). True False A 403(b) plan that contains employer contributions must satisfy ERISA requirements and meet non-discrimination requirements that apply to qualified plans. True False A 403(b) plan cannot be designed to permit participant loans. True False Similar to 401(k) plan, a 403(b) plan can allow for a Roth election and provide for automatic enrollment. True False

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Financial Planning Questions Click Link Below To Buy: http://hwcampus.com/shop/coyne-messina-articles-part-2-statistical-assessment/ Profit-sharing plans can be designed to allow employees to withdraw funds from participant accounts as early as 2 years after they were contributed by the employer assuming that the employee has worked for the employer for at least 5 years. True False The employer must have current or accumulated profits in order to make contributions to a profit-sharing plan. True False A 401(k) provides an employee the ability to save for his or her own retirement, but it does not permit the employer to contribute. True False Employee salary deferral contributions to a 401(k) plan are always 100 percent immediately vested. True False Under the safe harbor rules, a withdrawal to pay a child’s college tuition is considered a safe-harbor event. True False Hardship withdrawals are a subset of the broader safe harbor events category. True False In 2014 and 2015, Sally owns 6 percent of the employer's stock and earns $65,000. Sally will be considered a highly compensated employee for purposes of the actual deferral percentage test for 2015. True False An employer that makes one of the qualifying safe-harbor contributions to a 401(k) plan does not have to satisfy the ADP test. True False One of the advantages of receiving a distribution in stock from a stock bonus plan or an ESOP is that the unrealized appreciation is not taxed until the stock is sold. True False A candidate for an ESOP would like to create a market for his or her shares of the company and possibly leverage the purchase of employer stock using a loan that can increase the employer's deductible contribution beyond the normal threshold for other plan types. True False A simplified employee pension (SEP) plan is a retirement plan that uses an IRA as the funding instrument. True False A SEP cannot contain a loan provision. True False A candidate that has a large number of part-time employees should choose a SEP because it can be designed to exclude part-time employees. True False An employer can sponsor both a SIMPLE and a money-purchase pension plan. True False The employer who has few rank-and-file employees interested in participating in the plan and a modest contribution budget should consider the SIMPLE over the 401(k) plan. True False All those who receive payment for services from a qualified tax-exempt organization or public school are considered eligible employees for purposes of making contributions to the organization's 403(b) plan. True False Full-time employees willing to defer at least $200 generally have to be eligible to make salary deferrals under a 403(b). True False A 403(b) plan that contains employer contributions must satisfy ERISA requirements and meet non-discrimination requirements that apply to qualified plans. True False A 403(b) plan cannot be designed to permit participant loans. True False Similar to 401(k) plan, a 403(b) plan can allow for a Roth election and provide for automatic enrollment. True False

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