Adopting a defined benefit plan

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Reference no: EM1340180

Reasons why an employer should adopt a defined-benefit plan to account for past service include all the following EXCEPT

A. Funding flexibility exists when past service is accounted for.

B. Long-service employees will benefit if past service is accounted for.

C. A past-service provision can maximize the tax-shelter potential of the plan for owner-employees.

D. A past service provision will lower the employer's costs.

Reference no: EM1340180

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