Exam 4: Employer-Sponsored Retirement Plans

The Tent Circuit Court ruled in Tomlinson et al.vs.El Paso Corporation that ERISA did not require the employer to provide notification of wearaway periods so long as employees were informed and forewarned of plan changes. (Converting Defined Benefit Plans to Cash Balance Plans)

This type of hybrid plan is based on income and years of service,uses individual accounts,passes the IRS's cross-testing rules and the total benefits are based on the investment performance of the plan's assets. (Target Benefit Plans)

Which of the following is a tax benefit associated with 401(k)plans? (401(k)Plans)

A qualified preretirement survivor annuity (QPSA)is an annuity for the life of the participant,with a survivor annuity for the participant's spouse. (Qualified Plans)

According to the US Department of the Treasury,qualified retirement plans must cover at least 50 employees or at least 40% of the employer's workforce. (Qualified Plans)

The major distinction between the unit and flat defined benefit formulas is the use of the employee's years of service. (Defined Benefit Plans)

Forfeitures come from the accounts of employees who terminate their employment prior to earning vesting rights. (Defined Contribution Plans)

Which of the following factors does not determine the accrual rate in defined contribution plans? (Defined Contribution Plans)

This type of hybrid plan defines benefits for each employee by reference to the amount of the employee's hypothetical account balance. (Cash Balance Plans and Pension Equity Plans)

Employers can take tax deductions on qualified plans. (Introduction)

Qualified plans entitle employers and employees to substantial tax benefits not offered nonqualified plans. (Introduction)

The average benefit test is a method for determining participation requirements. (Qualified Plans)

Which of the following does NOT reflect one of the major differences between typical cash balance plans and 401 (k)plans? (Comparing Hybrid Plan Features with Defined Benefit Plan and Defined Contribution Plan Features)

The current tax treatment provides incentives only to employers to participate in retirement plans. (Origins of Employer-Sponsored Retirement Benefits)

Roth 401(k)plans are similar to 401(k)plans in which two ways? (Roth 401(k)Plans)

Accrual rules specify the rate participants can accumulate benefits. (Qualified Plans)

In 2012,the IRC set the maximum annual benefits of defined benefits plans at what amount? (Defined Benefit Plans)

In 2011,41% employees participated in defined contribution plans. (Trends in Retirement Plan Coverage and Costs)

The 133^1/3 % rule refers to what? (Defined Benefit Plans)

Savings Incentive Match Plans for Employees (SIMPLEs)can be either leveraged or nonleveraged. (Savings Incentive Match Plans for Employees (SIMPLEs))