Unit 2: Plan Qualifications

Question 1

ERISA stands for what

Answer 1

Employee retirement income security act of 1974

Question 2

The IRS jurisdiction over ERISA pertains to these two matters:

Answer 2

1 Tax issues
2Qualification for tax benefits

Question 3

The DOL jurisdiction over ERISA pertains to which two items?

Answer 3

Participant rights
Fiduciary behavior

Question 4

Title one of ERISA pertains to?
And is Enforced by

Answer 4

Labor law, DOL

Question 5

Title 2 of ERISA pertains to?
And is enforced by

Answer 5

Tax laws for retirement plans,
IRS treasury

Question 6

Title three of ERISA Pertains to and is enforced by

Answer 6

Enforcement both DOL and treasury

Question 7

Title 4 of ERISA Pertains to

Answer 7

Defined benefit plans only

Question 8

Jurisdiction over protecting Participant rights and fiduciary behavior is with

Answer 8

The DOL

Question 9

Rules for tax qualifications for qualified plans is found in which code under IRC

Answer 9

401(a)

Question 10

What are the six ramifications for disqualified plans

Answer 10

1 Company loses its tax deductions- must redo corporate taxes for years involved.
2Employees vested contributions recognized as income.
3Earnings subject to income taxes
4Distributions from plan not eligible for roll over.
5Improper employer transfer out considered taxable income.
6Must pay penalties for late filing 5500. potentially subject to criminal penalties as well.

Question 11

What is SMM

Answer 11

Summary of material modifications

Question 12

What does the SMM Communicate?

Answer 12

It explains changes to the plan in plain language and his provided to eligible employees.