Which one of the following is a retirement plan sponsored by an employer quizlet?

Which of the following scenarios pertaining to IRAs is NOT correct?

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Which one of the following is a retirement plan sponsored by an employer?
What is an employer
Which of these options is a type of employer
What is the name of an employer retirement plan?

A) Walter is age 60. He may take a distribution from his IRA without having to worry about an early withdrawal penalty.
B) June has accumulated $30,000 in her IRA. At age 53 she withdraws $2,500 to take a vacation. She will have to include the $2,500 in her taxable income for the year and pay a $250 penalty.
C) Bradley, age 72, is covered by an employer sponsored retirement plan. He cannot establish a traditional IRA.
D) Peter inherits $15,000 in IRA benefits from his father, who died in 2008. Peter can set up a tax-favored rollover IRA with the money and defer current income tax on the benefits received.

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A) how the plan measures investment performance.
B) the schedule for future needs of the plan.
C) investment parameters to be followed by the portfolio managers.

Under the rules of the Department of Labor (DOL),one of the most important documents participants are entitled to receive automatically when becoming a participant of an ERISA-covered retirement plan, is a summary of the plan, called the summary plan description or SPD. The plan administrator is legally obligated to provide to participants, free of charge, the SPD. The summary plan description is an important document that tells participants what the plan provides and how it operates. It provides information on when an employee can begin to participate in the plan, how service and benefits are calculated, when benefits become vested, when and in what form benefits are paid, and how to file a claim for benefits. However, it has nothing to do with the investment policies that will be followed by the plan's advisers.

Which one of the following is a retirement plan sponsored by an employer?

A 401(k) plan is a qualified plan that includes a feature allowing an employee to elect to have the employer contribute a portion of the employee's wages to an individual account under the plan. The underlying plan can be a profit-sharing, stock bonus, pre-ERISA money purchase pension, or a rural cooperative plan.

What is an employer

Promises the employee a specific monthly payout upon retirement. All contributions are done by employer only. Profit Sharing. Type of defined contribution plan in which the employer contributes a portion of the firm's profits each year. Contributions are skipped or reduced in unprofitable years.

Which of these options is a type of employer

ANSWER A defined-contribution pension plan is an employer-sponsored retirement plan where the contribution rate, not the benefit amount, is based on a specific formula.

What is the name of an employer retirement plan?

Examples of defined contribution plans include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans. A Simplified Employee Pension Plan (SEP) is a relatively uncomplicated retirement savings vehicle.