Author: Anonymous

One of the objectives of a benefit plan is to provide employee benefits that are comparable to those offered by other employers in the industry.

According to the Treasury Regulations, a split dollar life insurance plan may be used only in an employer-employee relationship.

Jill is considering naming a bypass trust as beneficiary of her IRA after her death. Jill’s spouse is a discretionary income beneficiary of the bypass trust. Which of the following is a reason for not designating the bypass trust as beneficiary of her IRA?

Employers can reimburse up to $20 a month tax-free for bicycle expenses to an employee who uses a bicycle to commute to work.

Corporate-owned key employee life insurance has no effect on a deceased key employee’s estate.

Bob Jolly is 73 this year. He has been a key employee of Appleton Bookkeeping Services since he joined the company 50 years ago. The owner of Appleton would love it if Bob stayed on indefinitely. Bob is in excellent health and has developed a wide clientele that enjoys his wit and charm as well as his broad experience and expertise. Bob says he’ll retire at 75 “while he still has some time to enjoy retirement.” Appleton Bookkeeping established SIMPLE IRAs for employees 5 years ago. Which of the following is (are) true for Bob?

If the death benefit is payable under a life insurance contract held by the qualified plan, the pure insurance amount of the death benefit is

Harold Walters, age 39, runs a tax accounting service. He employs five people. He wants to install a defined benefit plan for himself and his employees funded with life insurance, but he wants to retain some control over the plan investments. As his financial advisor, you tell Harold that the type of funding that would best meet his requirements is a(n)

Otis Carrington, a 50-year-old self-employed person, was severely injured in an auto accident and is no longer able to perform the tasks of any occupation. Which of the following is true?

According to the Treasury Regulations, a split dollar life insurance plan may be used only in an employer-employee relationship.