Finance

An employer-funded plan with favorable tax advantages, which repays em

An employer-funded plan with favorable tax advantages, which repays employees for medical care not covered by the employer’s standard medical plan is a(n) A) 401(k) account. B) individual retirement account (IRA). C) health reimbursement arrangement (HRA). D) flexible spending account (FSA).     ANSWER Answer: C

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Date: September 19th, 2020

Which of the following statements about retirement ages in defined ben

Which of the following statements about retirement ages in defined benefit pension plans is (are) true? I. The normal retirement age in most plans is 65. II. For a defined benefit plan, the early retirement age is the earliest age an employee can retire with full, unreduced benefits. A) I only B) II only C) […]

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Date: September 19th, 2020

Beta Corporation has 1,000 employees eligible to participate in the fi

Beta Corporation has 1,000 employees eligible to participate in the firm’s pension plan, and 100 of these employees are considered highly compensated. All of the highly compensated employees are covered by the plan. What is the minimum number of the 900 non-highly compensated employees who must be covered by the plan in order for the […]

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Date: September 19th, 2020

Which of the following statements about retirement benefits under pens

Which of the following statements about retirement benefits under pension plans is true? A) Under a flat percentage of annual earnings defined benefit formula, each employee receives the same dollar benefit. B) A benefit using final pay is usually based on an employee’s earnings during the last month of plan participation. C) A unit-benefit formula […]

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Date: September 19th, 2020

Some employers offer employees a choice of health care plans which are

Some employers offer employees a choice of health care plans which are designed to make employees more sensitive to health care costs, to provide an incentive to avoid unneeded care, and to seek low-cost health care providers. Such plans are called A) employee assistance plans. B) consumer-directed health plans. C) cafeteria plans. D) preferred provider […]

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Date: September 19th, 2020

Which of the following statements about the continuation of group heal

Which of the following statements about the continuation of group health insurance under the COBRA law is true? A) A continuation of coverage must be made available even if an employee voluntarily terminates employment. B) The length of the continuation of coverage is 90 days. C) The option to continue coverage applies to minor children […]

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Date: September 19th, 2020