Please answer the following questions 6) Lion Corp has a defined benefit plan wi

Question

Please answer the following questions

6) Lion Corp has a defined benefit plan with 60 employees. What is the minimum number of employees the defined benefit plan must cover to conform with the requirements set forth by the IRC?

Question 6 options:

a)

b)

c)

d)

7) Pickens' Pizza Palace's owner is a very generous and kind individual as he offers his employees a defined benefit pension plan. The plan utilizes a funding formula that considers years of service and average compensation to determine the pension benefit payable to the plan participants. If his employee, Sarah, is a participant in this defined benefit pension plan and she has 30 years of service with the company and average compensation of $75,000, what is the maximum pension benefit that can be payable to Sarah at her retirement?

Question 7 options:

a)

b)

c)

d)

8) Which of the following is (are) a defined benefit plan formula(s)?

Question 8 options:

a)

b)

c)

d)

9) Because a defined benefit plan a "promise to pay" feature, vesting schedules are not needed.

Question 9 options:

10) A defined benefit plan is in at-risk status for a plan year if it does not meet one of two tests; "Funding Target" and the " Target Normal Cost"

Question 10 options:

a)

30.

b)

24.

c)

42.

d)

50.

Explanation / Answer

6. Ans: b.24

Explanation:

.4 x 60 = 24 is the minimum number of employees the defined benefit plan must cover to conform with the requirements set forth by the IRC.

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