Author: Anonymous

Acorn Booksellers is a small business interested in adopting a qualified retirement plan. The owner of Acorn wants to be able to choose from more than one financial institution when implementing the plan. Acorn’s owner also wants to determine such things as the vesting schedule and the contribution or benefit formula. As a small business, Acorn wants to keep costs down. You recommend that Acorn use

Jay Casteel, age 29, ran a small water ski and jet ski rental shop in Gulf Shores. Unfortunately, near the end of the last season, a sudden storm with hurricane-force winds damaged or destroyed over half of his inventory. Revenues since the storm have been meager due to massive clean-up efforts and slower tourist trade. Jay is beginning to be pressured by some of his creditors. Jay has heard that the small Keogh fund that he started can be seized by his creditors if he cannot work out a repayment plan. You tell him that this is

If more than the maximum allowable amount is contributed in any year, an excise tax is imposed on the excess contribution.

Which of the following retirement plans would be most effective in encouraging early retirement?

In a rush to get a qualified retirement plan installed before the deadline for the year, the owner of Baxter Concrete failed to get a determination letter from the IRS. Five years later, Baxter is audited. If the IRS finds a disqualifying provision or if an essential provision is missing from Baxter’s plan,

Employee elections to defer compensation monthly under Section 457 can be made under an agreement entered into at any time during that month.

Volume submitter and prototype plan documents have a _____ remedial amendment cycle.

To design a good retirement plan, a designer should

Maxton Manufacturing, Inc. uses prior year testing to monitor discrimination in its Section 401(k) plan. Last year, the actual deferral percentage (ADP) for all nonhighly compensated employees at Maxton was 4%. This year, the ADP for highly compensated employees at Maxton can be as high as

Buster Keaton, owner of Keaton Property Management, Inc., wants to establish a bonus plan for his employees. Buster must