Retirement

Question 1

Defined benefit plan

Answer 1

defined benefit pension plans & cash balance pension plans (qualified)

Question 2

Defined contribution plans

Answer 2

money purchase pension plan, target benefit pension plan (qualified)

Question 3

Profit sharing plans

Answer 3

profit sharing plans, stock bonus plans, employee stock ownership plans, 401k plans, thrift plans, new comparability plans, age based profit sharing plans. (these are not pensions) (qualified)

Question 4

advantages of qualified plans

Answer 4

employer: current income and tax deductions, payroll tax savings
Employee: income tax deferrals, payroll tax savings, federally provided creditor asset protection

Question 5

Mandatory Distribution age

Answer 5

72

Question 6

coverage test for qualified plans

Answer 6

plan must meet 1 of 3 tests
1. safe harbor test
2. ratio percentage test
3. average benefits test

IN ADDITION TO the 50/40 test