Magnum Enterprises is located five miles out of town. Magnum provides a hot and cold lunch on-site for employees without cost. Employees must include the value of meals eaten as part of their taxable income.

If the participant dies at age 60 without a designated beneficiary, minimum distributions must be made

Which of the following is not a requirement for a trust to be treated as a designated beneficiary for required minimum distribution purposes?

The cost of the first $50,000 of group-term insurance provided for each employee is tax-free to the employee.

Interest on a car loan is deductible unless the owner is self-employed.

I. M. Best, owner of Best Corporation, wants his senior vice president, I. B. Better, to move from Milwaukee, Wisconsin, to Smyrna, Georgia, to open a branch office. Housing prices in Milwaukee are in a slump. Better’s house has been on the market for six months and has gotten only one offer that’s about $10,000 below market. Best wants to prevent Better from getting an inadequate price on his home due to a forced sale using the method that generates the greatest tax advantage for Best and Better. What should Best do?

Most of the ERISA investment rules are intended to

Defined benefit plans that use the flat amount formula provide a retirement benefit that is a percentage of the employee’s average earnings.

Money purchase plans traditionally provide that the participant’s account balance is converted to an equivalent annuity at retirement, based on annuity rates provided in the plan.

A cross-tested plan uses a fixed age-weighted formula. The plan is designed to maximize benefits for a firm’s highly compensated employees while providing whatever is necessary for remaining employees to satisfy nondiscrimination regulations.