Acorn Booksellers is a small business interested in adopting a qualified retirement plan. The owner of Acorn wants to be able to choose from more than one financial institution when implementing the plan. Acorn’s owner also wants to determine such things as the vesting schedule and the contribution or benefit formula. As a small business, Acorn wants to keep costs down. You recommend that Acorn use

Which of the following retirement plans would be most effective in encouraging early retirement?

In a rush to get a qualified retirement plan installed before the deadline for the year, the owner of Baxter Concrete failed to get a determination letter from the IRS. Five years later, Baxter is audited. If the IRS finds a disqualifying provision or if an essential provision is missing from Baxter’s plan,

Advantages of company car programs include which of the following?

Volume submitter and prototype plan documents have a _____ remedial amendment cycle.

To design a good retirement plan, a designer should

Homer Tanner, a foreman at Wellville Steel, pays the premium for a long-term disability policy that has a three-month waiting period and replaces 70% of pay. Homer suffered brain damage in an auto accident. Full recovery took nine months. Six months after the accident, Homer was able to return to work on a part-time basis. Still very unsteady on his feet, Homer oversaw just one section of the production line while in a wheelchair. Homer’s long-term disability payments ceased when he went back to work. Which of the following is true?(I)Homer’s long-term disability payments were taxed as ordinary income(II)Homer’s long-term disability payments were tax-free(III)the definition of disability in his long-term disability policy was “own occupation”(IV)the definition of disability in his long-term disability policy was “qualified for”(V)the definition of disability in his long-term disability policy was “total and permanent”

Employees can make in-service withdrawals from their 401(k) plans.

S corporation shareholders who own more than 50% of the business and are also employees of the corporation should

Tod Gristham, owner of Gristham Enterprises, wants to implement one retirement plan that will reduce turnover to about 2% a year, favor key employees, help forestall unionizing among his rank-and-file workers, and hold costs down to between 1% and 2% of company net profit. When you meet with Tod, which step of the employee benefit planning process is most important to cover with him?