Author: Anonymous

Which of the following can be provided on a cash option basis?

The IRC generally limits the amount of employer stock that can be in a retirement plan. Diversification is not required, however, for employee stock ownership plans (ESOPs).

Bob Everett is covered under a funded nonqualified deferred compensation plan that has an irrevocable trust set up for his benefit. Bob must pay income tax as soon as he is vested in contributions made to the fund, even though he does not have a right to withdraw cash from the fund until he retires.

Michelle Fenner is the qualified plan trustee for the defined benefit plan held by Flatt Tire Company. Flatt Tire uses life insurance as part of its qualified defined contribution plan. Currently, the cash value of the life insurance policies in the plan amounts to $50,000. Ms. Fenner can borrow against the cash value of the life insurance policies held in the plan.

Tony Johnson, an over-the-road trucker, had several out-of-town trips early in the year, so he got an extension for filing his income tax return. Tony can make the maximum IRA contribution this year. He has until the last date of his income tax filing extension to make a tax-deductible contribution to his IRA.

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