Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

crps - module #1 - types & characteristics of retirement plans > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

5 Types of Retirement Plans

A
  1. Qualified Plans
  2. Non-Qualified Plans
  3. Tax-Deferred Individual Plans
  4. Tax-Deferred Plans
  5. Individual Retirement Accounts (IRA)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

3 Types of Tax-Deferred Individual Plans

A
  1. SEP IRA Plan
  2. SARSEP IRA Plan
  3. SIMPLE IRA Plan

These are not qualified plans.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are Tax-Deferred Plans? - Name 2 types.

A

Like qualified defined contribution plans, but are NOT qualified plans.

  1. 403(b) Plans
  2. 457(b) Plans
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What 2 requirements must a qualified plan meet?

A
  1. Those of the Employee Retirement Income Security Act of 1974 (ERISA)
  2. The Internal Revenue Code

Then they provide favorable tax treatment for both the employer and employee.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Qualified plans are divided into what 2 classifications?

A
  1. Defined Benefit Plans - employer promises to pay a benefit at the employee’s retirement
  2. Defined Contribution Plans - employer pays a specific amount into an employee’s account but the benefit is undetermined
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

15 types of defined contribution plans

A
  1. Profit Sharing Plans
  2. Keogh (self-employed) Profit Sharing Plans
  3. Age-weighted Profit Sharing Plans
  4. Cross-tested Profit Sharing Plans
  5. 401(k) Plans
  6. Safe-harbor 401(k) Plans
  7. Savings Incentive Match Plan for Employees 401(k) plans (SIMPLE 401(k) Plans)
  8. 401(k) Keogh Profit Sharing Plans
  9. Employee Stock Ownership Plans (ESOP)
  10. Leveraged Employee Stock Ownership Plans (LESOP)
  11. Stock Bonus Plans
  12. 401(k) Employee Stock Ownership Plans (KSOP)
  13. Target Benefit Plans
  14. Money Purchase Pension Plans
  15. Money Purchase Pension Plans - Keogh
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

3 Types of IRAs

A
  1. Traditional IRA
  2. Non-Traditional IRA
  3. Roth IRA
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

7 Types of Qualified Defined Benefit Plans

A
  1. Flat Benefit Defined Benefit Pension Plans
  2. Unit Benefit (or Unit Credit) Defined Benefit Pension Plans
  3. Fixed Benefit Defined Benefit Pension Plans
  4. Cash Balance Defined Benefit Pension Plans
  5. Pension Equity Defined Benefit Pension Plans
  6. Insurance Contract Plans - Section 412(i) Defined Benefit Plans
  7. Defined Benefit Pension Plan Keoghs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

2 Types of Hybrid Qualified Plans

A
  1. Floor-Offset Plans

2. IRC Section 414(x) Eligible Combined Plans - Combined Defined Benefit/401(k) Plans for Small Employers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

4 Types of Non-Qualified Plans

A
  1. Pure Deferred Compensation Plans
  2. Excess Benefit Plans
  3. Supplemental Executive Retirement Plans (SERP)
  4. Top Hat Plans
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

6 Things ERISA Established

A
  1. Established a new set of rules for participation in retirement plans.
  2. Added mandatory schedules for the vesting of benefits.
  3. Set minimum funding standards.
  4. Set standards of conduct in plan administration and the handling of plan assets
  5. Required disclosure of plan information.
  6. Established a system for ensuring the payment of benefits.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What aided the passage of ERISA?

A

The plight of 4,400 Studebaker autoworkers who found themselves without expected pensions when their employer went bankrupt.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Pension Protection Act of 2006

A
  1. Makes permanent the increased contribution limits, enhanced vesting, and increased portablitiy of Economic Growth & Tax Relief Act of 2001.
  2. Requires faster and stricter funding standards for single & multiemployer defined benefit pension plans.
  3. Enacts rules for hybrid plans including cash balance, pension equity, and hybrid plans that are incorporated in Title 1 of ERISA (Dept. of Labor provisions), Title 2 of ERISA (Internal Revenue Code), and Age Discrimination Enforcement Act.
  4. Gives IRS full authority to implement and maintain IRS correction programs.
  5. Requires Employers to allow defined contribution plan participants to direct that their investments in publicly traded employer securities be reinvested in other suitable options.
  6. Creates new types of plans (less than 500 employees) consisting of a combination of defined benefit plan and 401(k) plan where the assets are held in a single trust.
  7. Creates safe
  8. Creates an exemption
  9. Authorizes a new insurance product
  10. Allows assets held
  11. Phases out use of 30-year Treasury
  12. Allows pension plans to provide
  13. Makes permanent the savers credit for IRA
  14. Allows benefits received by non-spouse beneficiary
  15. Allows qualified retirement plan distributions
  16. Liberalizes the portability rules
  17. Authorizes individuals age 70.5 or older to direct
  18. Allows taxpayers to authorize
  19. Repeals the sunset provision of EGTRRA
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What Type of Plan

Profit Sharing Plans

A

Defined Contribution Plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What Type of Plan

Keogh (self-employed) Profit Sharing Plans

A

Defined Contribution Plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What Type of Plan

Age-weighted Profit Sharing Plans

A

Defined Contribution Plan

17
Q

What Type of Plan

Cross-tested Profit Sharing Plans

A

Defined Contribution Plan

18
Q

What Type of Plan

401(k) Plans

A

Defined Contribution Plan

19
Q

What Type of Plan

Safe-harbor 401(k) Plans

A

Defined Contribution Plan

20
Q

What Type of Plan

Savings Incentive Match Plan for Employees 401(k) plans (SIMPLE 401(k) Plans)

A

Defined Contribution Plan

21
Q

What Type of Plan

Employee Stock Ownership Plans (ESOP)

A

Defined Contribution Plan

22
Q

What Type of Plan

Leveraged Employee Stock Ownership Plans (LESOP)

A

Defined Contribution Plan

23
Q

What Type of Plan

Stock Bonus Plans

A

Defined Contribution Plan

24
Q

What Type of Plan

401(k) Employee Stock Ownership Plans (KSOP)

A

Defined Contribution Plan

25
Q

What Type of Plan

Target Benefit Plans

A

Defined Contribution Plan

26
Q

What Type of Plan

Money Purchase Pension Plans

A

Defined Contribution Plan

27
Q

What Type of Plan

Money Purchase Pension Plans - Keogh

A

Defined Contribution Plan

28
Q

What Type of Plan

Flat Benefit Pension Plans

A

Defined Benefit Plan

29
Q

What Type of Plan

Unit Benefit (or Unit Credit) Pension Plans

A

Defined Benefit Plan

30
Q

What Type of Plan

Fixed Benefit Pension Plans

A

Defined Benefit Plan

31
Q

What Type of Plan

Cash Balance Pension Plans

A

Defined Benefit Plan

32
Q

What Type of Plan

Pension Equity Pension Plans

A

Defined Benefit Plan

33
Q

What Type of Plan

Insurance Contract Plans - Section 412(i) Defined Benefit Plans

A

Defined Benefit Plan

34
Q

What Type of Plan

Defined Pension Plan Keogh

A

Defined Benefit Plan

crps - module #1 - types & characteristics of retirement plans (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions