Retirement Flashcards
1
Q
Profit Sharing Plans (7 Types)
A
- Profit Sharing Plans
- stock Bonus Plans
- Employee Stock Ownership Plans
- 401k Plans
- Thrift Plans
- New Comparability Plans
- Age-Based Profit Sharing Plans
2
Q
Pension Plans (4 Types)
A
- Defined Benefit Pension Plans
- Cash Balance Pension Plans
- Money Purchase Pensions Plans
- Target Balance Pension Plans
3
Q
DB Pension Plans
A
- Defined Benefit Pension Plans
- Cash Balance Pension Plans
4
Q
DC Pension Plans
A
- Money Purchase Pension Plan
- Target Benefit Pension Plans
5
Q
General Safe Harbor Test
A
% of NHC covered >/= 70%
6
Q
Ratio Percentage Test
A
7
Q
Average Benefits Test
A
8
Q
Defined Benefit 50/40 Test
A
In addition to meeting 1 of the 3 coverage tests, a DB plan must satisfy the 50/40 test.
Requires the DB plan to benefit the lesser of 50 non-excludable (eligible) employees or 40% of all non-excludable (eligible) employees on each day of the plan year.
9
Q
Key Employee
A
- greater than 5% owner
- greater than 1% owner with comp. over $150k
- an officer with comp. over $215k
10
Q
Top Heavy Plan
A
- present value of total accrued benefits of key employees exceeds 60% of PV of total accrued benefits for all employees
OR - aggregate of account balances of key employees exceeds 60% of aggregate of accounts of all employees
11
Q
ADP
A
