Financial Planning Questions
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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