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2 Feb 2019

Is employer stock an appropriate investment alternative for DC plans? Should there be a limit to the amount of employer stock held in any participant’s account?

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Nestor Rutherford
Nestor RutherfordLv2
5 Feb 2019

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Related questions

Question 1

  1. Life insurance is viewed as favorable in defined benefit plans because it adds to the limit on deductible contributions

    True

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2 points

Question 2

  1. Some of the advantages of using life insurance in a qualified plan includethe following except:

    plan costs for employer are predictable

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    retirement benefits can be guaranteed by both the insurance company and employer

    low cost installation and service of the plan

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Question 3

  1. A defined benefit plan can help an older employee in a small business maximize tax-deferred savings.

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Question 4

  1. IRS sets a maximum limit on the projected annual benefit that a defined benefit plan can provide a participant.

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Question 5

  1. An employee can be covered under both a defined benefit and a defined contribution plan.

    True

    False

2 points

Question 6

  1. Which type of plan has benefit levels that are guaranteed by the employer and also the Pension Benefit Guaranty Corporation (PBGC)?

    money purchase plan

    defined benefit plan

    target benefit plan

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2 points

Question 7

  1. Regarding a cash balance plan, which of the following is (are) true?

    the employee bears investment risk

    each participant has a hypothetical account that the employer credits at least annually

    the plan benefits older workers more than younger workers

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Question 8

  1. A traditional defined benefit plan and a cash balance plan share the following characteristics:

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Question 9

  1. If an employer wants to reward an employee

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2. Can the minimum funding standard for qualified plans be waived?

3. How much may an employer deduct for it contributions to a qualified profit sharing or stock bonus plan?

4. What special qualification requirements apply to profit sharing plans but not to pension plans?

5. What penalties can be imposed under Section 409A?

6. What rules govern “Top Hat” plans?

7. What penalties apply to early distributions for an IRA?

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If an employer were found guilty of bad-faith bargaining in a case like this, should employees be entitled to a back-pay remedy? If so, how could the NLRB determine the appropriate amount to be awarded?

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