Nex sponsors a DB(k) plan that provides benefits for all employees. Nex adopted the plan four years ago. Kleen, who is age 55 and earns $100,000, has been employed for the last ten years with Nex. Which of the following statements is correct regarding Kleen's benefits under Nex's DB(k) plan?
A) Kleen will be limited on his deferral to the 401(k) plan because of the required contribution to the DB part of the plan.
B) If the DB(k) plan provides for a cash balance option, then Kleen should be receiving pay credits of 6% per year.
C) All benefits provided under the DB(k) plan will be 100 percent vested for Kleen.
D) Because this plan is a proto-type DB (k) plan, Nex will not have to file a Form 5500.
C) All benefits provided under the DB(k) plan will be 100 percent vested for Kleen.
Option a is not correct. He could defer up to the annual limit. Option b is not correct. Since Kleen is over age 50, he would be receiving pay credits of 8% per year. Option d is not correct because DB(k) plans must file a single Form 5500.
You might also like to view...
Idle time is computed using which formula?
A. Total time used – total time available B. Total time used + total time available C. Total time available – total time used D. Total time used/total time available
Generally, a contract must express its terms—no reasonable inferences are permissible
Indicate whether the statement is true or false
Stocks A and B each have an expected return of 12%, a beta of 1.2, and a standard deviation of 25%. The returns on the two stocks have a correlation of +0.6. Portfolio P has 50% in Stock A and 50% in Stock B. Which of the following statements is CORRECT?
A. Portfolio P has a beta that is greater than 1.2. B. Portfolio P has a standard deviation that is greater than 25%. C. Portfolio P has an expected return that is less than 12%. D. Portfolio P has a standard deviation that is less than 25%. E. Portfolio P has a beta that is less than 1.2.
A vacation license: A) Gives the owner of the license a fee simple interest in the property
B) Is subject to the laws on the sale of securities. C) Is the same as a time-sharing interest. D) Is the same as a time-sharing network.