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Stock option plans are most often used by closely held corporations.

Which one of the following plans allows for individual, rather than employer-related, contributions?

The ratio percentage test states that a qualified plan must cover a percentage of nonhighly compensated employees that is at least 70% of the percentage of highly compensated employees covered.

Stock option plans are most often used by closely held corporations.

What is the typical tax status of qualified HSA distributions made after an individual is no longer eligible for HSA coverage?

Under which of the following situations may key employees lose tax benefits under a cafeteria plan?(I)if the plan provides them with a comprehensive benefit package(II)if they are provided more than 25% of aggregate plan benefits(III)when the plan discriminates in favor of highly compensated employees(IV)when life insurance benefits are provided

Hammond Publishing is a closely held company. The owner wants to keep the company in the Hammond family. Hammond wants to attract an effective CEO to join the company and cannot hire within the family to fill this position. Use of a stock option would help Hammond accomplish all of the company’s important objectives.

Under which of the following situations may key employees lose tax benefits under a cafeteria plan?(I)if the plan provides them with a comprehensive benefit package(II)if they are provided more than 25% of aggregate plan benefits(III)when the plan discriminates in favor of highly compensated employees(IV)when life insurance benefits are provided

The corporation gets a deduction for the compensation income element that an executive must recognize if stock is sold before the two year/one year holding period.

Stock option plans must comply with nondiscrimination coverage rules.