RET

Question 1

Ratio percentage coverage

Answer 1

Plan must cover a NCHEs at least 70% of HCE’s coverage.

Average benefit test is avg benefit for NHCEs must be at least 70% of benefits offered to HCEs.

Question 2

HCEs relate to _________
Key empEE relate to _________

Answer 2

HCEs = discrimination (ADP/ACP test)
(5% owner or $155K)

Key = vesting schedules
(5% owner / 1% owner w/ $155k / officer w/ 220K)

(top heavy = 60% of aggregate benefits go to key)

Question 3

Permitted Disparity:
BD = ?
DC = ?

Answer 3

DB = 26.25%
DC = 5.7%

Base % + permitted disparity = excess %

Question 4

Social Security Taxation amounts based on income

Answer 4

————50% 85%
Single 25K 34K provisional income
MFJ 32K 44K provisional income

Question 5

CODA

Answer 5

Aka 401K

Question 6

SS Taxation ranges

Answer 6

50% | 85%

Single 25K | 34K
MFJ 32K | 44K

Question 7

First time home buyer and qual education

Answer 7

= IRA, not 401k