Money Purchase Pension Plans Flashcards
1
Q
Are money purchase pension plans covered by PBGC insurance?
A
no - no DC plans are!
2
Q
Are money purchase pension plans subject to QJSA?
A
yes
3
Q
What percent can be invested in employer stock in a money purchase pension plan?
A
no more than 10%
4
Q
Typically there are no in-service withdrawals until what age in a money purchase pension plan?
A
Age 62
5
Q
What are 3 reasons an employer may choose a money purchase pension plan?
A
-easy to understand with guaranteed contributions
-participant bears the investment risk
-the census has younger participants
