Author: Anonymous

The owner of Windom Enterprises has asked you to identify a tax-free compensation option that could be used to avoid the “reasonableness of compensation” issue for their executives and upper-level managers. As the owner’s financial advisor, you suggest

Which of the following is (are) true regarding timing of corporate deduction for compensation payments?

Conservative Corp. wants to provide employees with low cost long-term disability coverage. As the company’s financial advisor, you explain that integrating long-term disability coverage with ________ will accomplish that goal.

Employers match employee contributions to 401(k) plans to increase participation and help the plan meet nondiscrimination requirements.

The owner of Hearth Home Bakery wants to install a health plan that will place greater responsibility for maintaining low health care costs directly on employees. The best way of doing this is for Hearth Home to offer employees

Traditional 401(k) plans can be funded entirely through salary reductions by employees, enabling employers to bear no additional cost for employee compensation.

What is one of the primary considerations specifically related to constructive receipt of severance benefits in a funded plan?

A Section 457 plan that includes limits on the amount deferred is generally referred to as an eligible Section 457 plan.

If an employer purchases a relocated employee’s old home to prevent the employee from getting below market price due to a forced sale, the amount above fair market value that the employee receives can be deemed additional compensation.

Which of the following is not an acceptable method for overcoming a retirement shortfall?