Nondiscriminatory contribution formula

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Reference no: EM133254110

Q1: Employer contributions t purchase life insurance within a qualified plan are not tax deductible. A. True B. False

Q2: A savings/match plan works best in a company that has

a. relatively youn employees

B. employees willing to accept investment risk

C. Employees who vary widely in their need or desire to save for retirement

D. all of the above

E. only b and c

Q3. The employer makes annual contributions to each employees account under a nondiscriminatory contribution formula that requires a contribution of specified percentage up to.

a. 5 percent

b. 25 percent

c. 20 percent

d. 50 percent

Q4 The owner of Appleton manufacturing has provided employees with a health care program that limits their out of pocket costs to an annual $500 deductible, a 10% match to the company's 401k plan, and a flexible spending account. during the past few years, employees have become increasingly vocal about what they consider to be low pay. which of the following steps in the employee benefit planning process has the owner of Appleton neglected?

a. formulate a new overall employee compensation plan

b. analyze existing plans to identify weaknesses and needs for revision

c. develop a program for periodic review of the plans

d. identify the employee's objectives; quantify and prioritize them

e. communicate the plan effectively

q5. when a husband and wife own property as tenancy by the entirety, creditors of one spouse can attach the other spouses interest in the property.

A. True

B. False

Reference no: EM133254110

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