The principal economic purpose of life insurance is to accumulate capital

Generally, parachute rules also apply to payments from qualified retirement plans.

If the plan is prefunded by the employer,

A plan may provide benefits to former employees, including retired, disabled, or laid-off employees.

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.