Finance

Winslow Corporation has many long-term employees. The company has neve

Winslow Corporation has many long-term employees. The company has never had a pension plan. Recently, a new management team was hired. The new president said he would like to start a pension plan through which he could reward the long-term service provided by many employees. Which of the following types of plans should Winslow Corporation […]

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Date: September 19th, 2020

Which of the following is a common investment mistake that many retire

Which of the following is a common investment mistake that many retirement plan participants make? A) not investing heavily enough in common stock issued by the employer B) investing too heavily in common stock when close to retirement C) participating in an employer-sponsored retirement plan to obtain matching employer contributions D) participating in an employer-sponsored […]

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Date: September 19th, 2020

Which of the following statements regarding minimum vesting standards

Which of the following statements regarding minimum vesting standards for qualified defined benefit plans is (are) true? I. The vesting standards apply to both employer and employee retirement contributions. II. Employers may vest benefits more quickly than the minimum standards . A) I only B) II only C) both I and II D) neither I […]

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Date: September 19th, 2020

Which of the following statements about tax-deferred retirement plans

Which of the following statements about tax-deferred retirement plans in the U.S. is true? I. Women, on average, receive lower employment-based retirement income than men. II. One way to hedge against inflation is to invest lump-sum pension distributions in fixed-income investments. A) I only B) II only C) both I and II D) neither I […]

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Date: September 19th, 2020

Which statement is true with regard to problems and issues with tax-de

Which statement is true with regard to problems and issues with tax-deferred retirement plans in the United States? A) Inadequate participation in employer-sponsored retirement plans can create economic insecurity for retired employees. B) Retirement benefits for women are higher than retirement benefits for men, reflecting the higher wages women are paid. C) Employees do not […]

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Date: September 19th, 2020

Small business owners have a number of retirement plans available to t

Small business owners have a number of retirement plans available to them. One type of plan is limited to employers with 100 or fewer eligible employees. Under this type of plan, small employers are exempt from most of the nondiscrimination and administrative rules that apply to qualified plans. Such plans are called A) Keogh plans. […]

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Date: September 19th, 2020

To encourage low- to moderate-income workers to save for retirement, a

To encourage low- to moderate-income workers to save for retirement, a tax credit called the Saver’s Credit is available. Which statement about tax credits and tax deductions is true? A) Tax deductions are more favorable than tax credit for most taxpayers. B) Tax credits reduce taxes owed on a dollar-for-dollar basis. C) Tax credits reduce […]

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Date: September 19th, 2020

All the following statements concerning a Roth 401(k) plan are true EX

All the following statements concerning a Roth 401(k) plan are true EXCEPT A) After-tax dollars are used to fund the plan. B) Investment earnings accumulate on a tax-free basis. C) Employees at all income levels may contribute to the plan, but annual contributions are limited. D) Qualified distributions at retirement are fully taxable.     […]

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Date: September 19th, 2020

The tax credit available through the Saver’s Credit is equal to A) th

The tax credit available through the Saver’s Credit is equal to A) the annual IRA contribution limit. B) $2,000 regardless of income level and tax-filing status. C) a percentage of the contribution made to a traditional IRA, Roth IRA, 401-k, SIMPLE plan, or 403(b) plan. D) one-fourth of the Social Security taxes paid by the […]

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Date: September 19th, 2020

JKL Company just converted its traditional defined-benefit plan to ano

JKL Company just converted its traditional defined-benefit plan to another type of plan. Under the plan, benefits are defined in terms of a hypothetical account balance, with retirement benefits dependent upon the value of the participant’s account at retirement. Each year, employees receive an interest rate credit and a pay credit which is a specified […]

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Date: September 19th, 2020