which one of the following is a true statement about retirement planning? course hero

Which pension plan benefits older employees the most?

What are the advantages of a 401(k) plan?

What does a plan sponsor guarantee?

What is target benefit pension?

When does Andi have to file a plan?

Does a cash balance pension plan have separate accounts?

Do you have to make an annual contribution to a health insurance plan?

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Jim, a 23 years old factory worker, was seriously injured when a hammer fell on his head while he was at his work station. Jim hadn’t worn his safety helmet at the time of the accident even though the safety rules of the company necessitate the use of safety helmets at all times.

Which age group generally benefits the most from the - Course Hero

Which age group generally benefits the most from the establishment of a Cash from CSM 510 at University of Alabama

Which pension plan benefits older employees the most?

a. A cash balance pension plan usually benefits older employees the most.

What are the advantages of a 401(k) plan?

All of the following are advantages of a 401 (k) plan except: a. Employees are permitted to shelter current income from taxation in a 401 (k) plan. b . Employers can sponsor 401 (k) safe harbor plans without committing to annual contributions and without creating a deferred liability.

What does a plan sponsor guarantee?

The plan sponsor guarantees an earnings rate for the contributions made to target benefit pension plans. b. The plan sponsor of a target benefit pension plan does not guarantee that the participant will receive an amount, expected to be the "target benefit" amount, at his retirement.

What is target benefit pension?

A target benefit pension plan is a money purchase pension plan with a funding formula that considers age and salary. b. The plan sponsor of a target benefit pension plan does not guarantee that the participant will receive an amount, expected to be the "target benefit" amount, at his retirement.

When does Andi have to file a plan?

a. Andi must establish and contribute to the plan by December 31 of the year in which she would like to establish the plan. b. Andi must establish the plan by July 31 of the year in which she would like to have the plan and contribute by May 15 of the following year assuming she filed the appropriate extensions.

Does a cash balance pension plan have separate accounts?

d. A cash balance pension plan does not have individual separate accounts for each participant.

Do you have to make an annual contribution to a health insurance plan?

a. The plan sponsor is required to make an annual contribution to the plan.

Which pension plan benefits older employees the most?

a. A cash balance pension plan usually benefits older employees the most.

What are the advantages of a 401(k) plan?

All of the following are advantages of a 401 (k) plan except: a. Employees are permitted to shelter current income from taxation in a 401 (k) plan. b . Employers can sponsor 401 (k) safe harbor plans without committing to annual contributions and without creating a deferred liability.

What does a plan sponsor guarantee?

The plan sponsor guarantees an earnings rate for the contributions made to target benefit pension plans. b. The plan sponsor of a target benefit pension plan does not guarantee that the participant will receive an amount, expected to be the "target benefit" amount, at his retirement.

What is target benefit pension?

A target benefit pension plan is a money purchase pension plan with a funding formula that considers age and salary. b. The plan sponsor of a target benefit pension plan does not guarantee that the participant will receive an amount, expected to be the "target benefit" amount, at his retirement.

When does Andi have to file a plan?

a. Andi must establish and contribute to the plan by December 31 of the year in which she would like to establish the plan. b. Andi must establish the plan by July 31 of the year in which she would like to have the plan and contribute by May 15 of the following year assuming she filed the appropriate extensions.

Does a cash balance pension plan have separate accounts?

d. A cash balance pension plan does not have individual separate accounts for each participant.

Do you have to make an annual contribution to a health insurance plan?

a. The plan sponsor is required to make an annual contribution to the plan.