Category: Uncategorized

Which of the following options is not an advantage of defined benefit plans?

Baden Industries has three divisions: planning, manufacturing, and marketing. Tim Jackson, owner of Baden, wants to tie a bonus plan to profit as an employee performance incentive. As his financial advisor, you explain to Tim that profit can be calculated as

Will Hurt has an employer-provided health plan that has a $500 calendar-year deductible with a 3-month carryover provision. Will has $100 in medical bills in June that are covered by the plan. In late November, he has $100 additional medical expenses. Then in January, he has another $700 in medical expenses. Will’s health care plan will cover _____ of his expenses

Which of the following is (are) true regarding Section 401(k) plans?

Distributions from a traditional IRA cannot be made before the participant turns 59½ unless the IRA owner dies.

Which of the following options are good questions to ask about existing benefit plans?(I)Who is covered?(II)What benefits are provided?(III)How is the plan funded?(IV)Who administers the plan?

HMOs try to control costs by emphasizing preventative care.

If ERISA’s pension plan rules do not apply, a severance plan can cover:

Directors of Xenon Corporation are considering changing from a traditional defined benefit plan to another type of plan. They have asked you to explain the advantages and disadvantages of such a change. You explain that if Xenon Corp. converts to

Truth in Lending requirements apply to every loan an employer makes.