Series 66: Exercise

Exercise

Answer the following questions

1. 1. What is the most important defining feature of qualified retirement plans?
2. A. These plans typically allow participants to make contributions to the plan with pre-tax dollars.
3. B. These plans comply with Employee Retirement Income Security Act requirements.
4. C. Pension sponsors must fully fund the participants’ benefits, and the contributed funds must be held separate from other corporate assets.
5. D. Such plans often include employer matching of employee contributions, and employers can deduct employer contributions from their corporate taxes.
6. 2. List the two primary goals of most retirement plans.
7. 3. True or false. If a company is forced to liquidate, retirement fund monies are available for creditor access just like other company assets.
8. 4. True or false. Even though both IRS regulations and ERISA requirements state that employers must make retirement plan accounts available to employees over 21 years old, compan