Reference no: EM133214876

Assignment:

1. In a retirement plan, the right of a participant to receive his or her accrued benefit benefits at normal or early retirement, whether or not currently in the service of the employer is referred to as:

A. Integration.

B. Benefit accrual.

C. Annuity options.

D. Vesting.

E. Plan termination.

2. A person who has discretionary authority or control in the administration of a pension plan is referred to as a:

A. Beneficiary.

B. Sponsor.

C. Fiduciary.

D. Controlling party.

E. Disinterested Party.

3. Any taxable amount received before age 59-1/2 from a qualified retirement plan is subject to an additional penalty of:

A. 10 percent.

B. 15 percent.

C. 20 percent.

D. 25 percent.

E. 50 percent.

4. Elapsed time is:

A. A method of measuring service that considers the amount of time that has elapsed between the employee's commencement date and his severance date.

B. A method of measuring service that uses units of time, like hours or days or weeks, to calculate benefit service.

C. A method of determining eligibility based on the number hours that have elapsed since the employee's data of hire.

D. A method of calculating vesting service while a participant in on leave of absence or disability leave.

E. A method of measuring vesting service that was commonly used in pension plans, but became a prohibited method under the Pension Protection Act of 2006.

5. ERISA Section 404(c):

A. Established the Pension Benefit Guarantee Corporation.

B. Allows employers to make matching contributions into a 401(k) plan.

C. Defines includable compensation.

D. Provides a plan sponsor and other fiduciaries with liability protections on participant-directed retirement plans.

E. Sets forth the rules plan sponsors need to follow when creating a retirement plan trust.

6. Which of the following statements about the tax implications of qualified pension plans is true?

A. Investment income on plan assets is taxable in the year the investment income is earned.

B. Employer contributions are deductible up to certain limits as an ordinary business expense.

C. Employer contributions are considered taxable income to employees but are taxed at capital gains rates.

D. Distributions from qualified pension plans are received tax-free by the retiree.

E. Earnings on investment growth in a defined benefit plan are taxable to the sponsoring employer.