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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.

For purposes of required minimum distributions from an IRA or qualified plan, which of the following cannot be a designated beneficiary?

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

Magnum Enterprises is located five miles out of town. Magnum provides a hot and cold lunch on-site for employees without cost. Employees must include the value of meals eaten as part of their taxable income.

If the participant dies at age 60 without a designated beneficiary, minimum distributions must be made

The cost of the first $50,000 of group-term insurance provided for each employee is tax-free to the employee.