Exercise
Answer the following questions
- 1. What is the most important defining feature of qualified retirement plans?
- A. These plans typically allow participants to make contributions to the plan with pre-tax dollars.
- B. These plans comply with Employee Retirement Income Security Act requirements.
- C. Pension sponsors must fully fund the participants’ benefits, and the contributed funds must be held separate from other corporate assets.
- D. Such plans often include employer matching of employee contributions, and employers can deduct employer contributions from their corporate taxes.
- 2. List the two primary goals of most retirement plans.
- 3. True or false. If a company is forced to liquidate, retirement fund monies are available for creditor access just like other company assets.
- 4. True or false. Even though both IRS regulations and ERISA requirements state that employers must make retirement plan accounts avai