One of the disadvantages of an ESOP is that the stock is in…
One of the disadvantages of an ESOP is that the stock is in an undiversified investment portfolio. Which of the following statements is correct about an ESOP that defines normal retirement age to be 66?1. An employee may require that 25 percent of the account balance be diversified so long as he/she is age 65 and completed 10 years of service.2. An employee may require that 50 percent of the account balance be diversified during their sixth & final year of their qualified election period that begins when the employee is deemed a qualified participant.
Read DetailsHenry, who is 48 years old, works for GN-BA!, Inc., with a s…
Henry, who is 48 years old, works for GN-BA!, Inc., with a salary of $330,000, a car allowance, and a very nice expense account. GN-BA! is a Fortune 750 company that sponsors a defined benefit plan that pays two percent times years of participation times the average of the three final years of compensation. In addition, GN-BA! sponsors a 401(k) / profit-sharing plan and contributes 18% of employees salary to the profit-sharing plan. There is no additional match. If the ADP of the NHCEs is 3%, what is the maximum that Henry can defer this year (2024)?
Read DetailsRobbie is the owner of SS Automotive and he would like to es…
Robbie is the owner of SS Automotive and he would like to establish a qualified pension plan. Robbie would like most of the plan’s current contributions to be allocated to his account. He does not want to permit loans and he does not want SS Automotive to bear the investment risk of the plan’s assets. Robbie is 30 and earns $300,000 per year. His employees are 40, 45, and 48 and they each earn $50,000 per year. Which of the following qualified pension plans would you recommend that Robbie establish?
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