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12 Cards in this Set
- Front
- Back
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What is an ESOP? |
ESOP stands for "Employee Stock Ownership Plan". |
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Which government regulation prevents retirement plans from favoring highly compensated employees? |
Nondiscrimination |
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SIMPLE plans are available for businesses that employ no more than how many employees? |
100 |
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Which of the following is a characteristic of a Roth IRA? |
Roth IRA's are unique in that they provide back-loaded benefits. The contributions are not tax-deductible, but the earnings are entirely tax-free when they are withdrawn. |
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Salary Reduction SEP plans (SARSEP's) are reserved for small employers with up to how many employees? |
25 |
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Which law made sweeping reform of pension laws by improving the system and increasing opportunities to fund retirement plans? |
The Pension Protection Act provided the most sweeping reform of America's pension law in over 30 years. It encourages workers to increase their contributions to employer-sponsored retirement plans and helps them manage their investments. |
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Which of the following statements regarding Roth IRA's is correct? |
No deduction can be taken for contributions made to a Roth, but earnings on contributions are entirely tax-free when they are withdrawn. |
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How are ESOPs usually invested? |
In an ESOP, companies provide their employees with stock ownership, often at no up-front cost to the employees. |
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The Employee Retirement Security Act of 1974 (ERISA) regulates group health insurance in the area of |
The Employee Retirement Security Act of 1974 (ERISA) regulates group health insurance in the area of disclosure and reporting. |
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What are the tax characteristics of a Roth IRA? |
The tax characteristics of a Roth IRA are non-deductible contributions and tax-free distributions. |
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What is an ESOP? |
ESOP stands for "Employee Stock Ownership Plan". |
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Which government regulation prevents retirement plans from favoring highly compensated employees? |
Nondiscrimination prevents retirement plans from favoring highly compensated employees. |
