A moving expense reimbursement plan must meet ERISA requirements because it is classified as a welfare benefit plan.

Which of the following is (are) true regarding a cash balance plan?

A Health Reimbursement Arrangement cannot

The IRC generally limits the amount of employer stock that can be in a retirement plan. Diversification is not required, however, for employee stock ownership plans (ESOPs).

One of the disadvantages of life insurance products is that policy expenses and commissions may be greater than for comparable investments.

Michelle Fenner is the qualified plan trustee for the defined benefit plan held by Flatt Tire Company. Flatt Tire uses life insurance as part of its qualified defined contribution plan. Currently, the cash value of the life insurance policies in the plan amounts to $50,000. Ms. Fenner can borrow against the cash value of the life insurance policies held in the plan.

The owner of Windom Enterprises has asked you to identify a tax-free compensation option that could be used to avoid the “reasonableness of compensation” issue for their executives and upper-level managers. As the owner’s financial advisor, you suggest

A SIMPLE IRA can be partially funded with salary reductions by employees.

The plan is required to provide immediate vesting of benefits.

Employees can elect a salary reduction to fund their 401(k) plan either before or within a month after compensation is earned.