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1. Which of the following statements is not correct regarding stock bonus plans?
a. Stock bonus plans allow for the current deductibility of non-cash contributions.
b. The required repurchase option for a stock bonus plan can create potential cash flow issues in the future.
c. Stock bonus plans are generally as cost efficient to operate as profit-sharing plans or money purchase pension plans.
d. The eligibility for a stock bonus plan could be age 20 and six months of service.
2. Which of the following statements about stock bonus plans is false?
a. A CODA can be attached to a stock bonus plan.
b. Participants of a stock bonus plan must have the right to demand employer securities on plan distributions.
c. Stock bonus plans have a deductible contribution limit of 25 percent of compensation.
d. None of the above are false. All are true.
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