Qualified plans

Assignment Help Finance Basics
Reference no: EM1339759

Thomas, age 55 and the owner of a computer repair shop, has come to you to establish a qualified plan. The repair shop, which employs mostly young employees, has had steady cash flows over the past few years, but Thomas foresees shaky cash flows in the future as new computer prices decline. Thomas would like to allocate as much of the plan contributions to himself as possible. He is the only employee whose compensation is in excess of $100,000. Which of the following qualified plans would you advise Thomas to establish?

A. Profit sharing plan

B. Defined benefit pension plan

C. Cash balance pension plan

D. Money purchase pension plan (integrated)

Reference no: EM1339759

Questions Cloud

What do mean by rflps, vntrs, and snps : What do mean by RFLPs, VNTRs, and SNPs.
Issues in cultivating stronger project : With respect to cultivating stronger projects, what important issues should it address, and how?
Explain maximizing shareholder wealth and payment of bribes : Explain Maximizing shareholder wealth and payment of bribes and Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad
Describe why the us farm policy is failing : Describe why the US farm policy is failing. Why were the WTO 2005-6 meetings a failure. What were the main issues and reasons.
Qualified plans : Find the  qualified plans for  Thomas to establish.
Find out an ideogram of human chromosome : Explain in words the nature of the woman's chromosome 1 abnormality.find out an ideogram of human chromosome.
Computing number of weeks take to complete the project : What is the critical path? How many weeks will it take to complete the project?
Explain legal critical thinking exercise : Explain Legal Critical Thinking Exercise and discuss the type of sexual harassment Mary thinks she is experiencing
Establishing the third amendment : In this posting, students will understand why the Third Amendment was established and how it protects American citizens against abuses of power by the government.

Reviews

Write a Review

Finance Basics Questions & Answers

  Multifidcuiary stakeholder models of corporate social

Explain each of shareholder and multifidcuiary stakeholder models of corporate social responsibility. Write down the problems which exist in respect of each of them.

  Discuss unsuccessful negotiation situation

Describe unsuccessful negotiation situation and suggest actions could have been taken to enhance future like negotiations by applying best practices in negotiations.

  Evaluate the effective annual interest rate associated

Credit standards and accounts receivable Evaluate the effective annual interest rate associated with loan

  Computational fluid dynamics

Question on  Computational Fluid Dynamics,    What do your simulations derive the drag coefficients to be? Explain any discrepancies as best as you can.

  Average annual inflation rate expected by investors

estimate the average annual inflation rate expected by investors over the life of the thirty- yr bond.

  Value per share of merged firm

Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 a share.

  Analysing characteristics of derivative markets

Analyse characteristics of derivative markets, by focusing on credit default swaps (CDS).

  Computation of annual depreciation

Computation of Annual Depreciation and Book Value at the end of life of the equipment and classified as seven-year property under MACRS

  Computation of current price of the bond

Computation of current price of the bond and What is the current price of the bonds given that they now have 14 year to maturity

  Finance future value or present value

Calculate the equal annual deposits that you must make for the next 25 years( with the first deposit occurring one year from today) to achieve your desired retirement flow.

  Compounded value of annuity

You would like to start saving for retirement. Supposing you're now 20 years old and you want to retire at age 60, you've 40 years to watch your investment grow. Compute how much your accumulated investment is expected to be in 40 years.

  Description of dominant strategy

Write down the major ways that the risks of exchange rate changes can be hedged against? What are the ways a multinational corporation can reposition its funds to increase its profits?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd