Author: Anonymous

Ann has a Roth IRA. She died this year. Her son Jim is the designated beneficiary. Jim is not required to start minimum distributions next year because Roth IRAs are not subject to the required minimum distribution rules after death.

Late last year, a hurricane along the North Carolina coast devastated several coastal towns. Rebuilding efforts in the region earlier this year have boosted profits of nearby Benson Lumber Company to triple the profits of the previous year. The CEO and two highly paid executives at Benson have an established agreement with the company, which returns 30% of net profit to them in addition to their base salary. If demand continues through the rest of the year, the three top executives at Benson will receive three times last year’s salary. Benson’s best case for establishing “reasonableness of compensation” is

A tax deferred annuity is not subject to Section 415 limits.

Qualified plan minimum distribution rules apply to Section 457 plans.

Which of the following are advantages of cash compensation?(I)it must meet the reasonableness test for deductibility(II)it is easier to budget than non-cash benefits(III)ERISA regulations are not normally involved(IV)cash compensation paid currently is currently taxable as ordinary income

Following ERISA guidelines for qualified plan investments generally results in selecting from a rather narrow range of investment strategies.

In addition to elective salary reduction contributions, which of the following may be used as an alternative for making contributions into a 401(k) plan?

For purposes of PTE 92-6, disqualified people who could not purchase life insurance for you from a qualified plan include your sibling’s spouse.

A sole proprietor must have employees to establish a Keogh retirement plan.

Bane Industries, Inc. has 1,000 employees. The average age of the workforce at Bane is 45, and 80% of the workers earn a mid-range income. Ten percent of workers are highly compensated, and 10% of workers are low-wage workers. Advantages of using a cash balance plan at Bane Industries include