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13.) Charles earns $ 400,000 per year home Cleaning
services has been employed for the last ten
year:
Home
Cleaning
services
sponsors
defined benefit
plan that provides employees with abenefit equal to
1.5% per year service ot employees final
compensation At he current time what Charles
retirement benefit payable from the defined plan.
$39,000
b.$60,000
)$210.
d.)$260,000
14 Milton age 38 earns 0,000 per year His
Dumaine Consulting sponsors o qualified profit
sharing 401(k) allocates all plan forfeitures to
remainin participants.if the rent year Dumaine
Consulting makes contribution to all imployees and
allocates 4,000 of forfeitures Milton's profit
sharing plan account,what is 1 he maximum Milton can
defer the 401 kl plan in 2014?
a)$0
b.)$14,000
c.)$17,500
d.)$23,000
16.)SK owns Sk Ltd.which is professional firm with the
five employees that sponsors both a defined benefit plan
sharing plar
with c cash
deferred
arrangement.
The
covered compensation for SKLtd 600,000.Salary
deferrals total of 300,000,If the required funding for
the defined benefit planis 120,000, then how much can
be contributed the profit sharing plan
b.)$30,000
)$36,000
d.)$150,000
3.)If benefit from qual fied
2,000 per month,what is
the
maximum
death
benefit
coverage
that
the on the 100 ratio test?
a)$0
b.)$2.400
)$200,000
d.)240,000
13.)A defined ion plan has a funding form ula
equal
final
salary
If
Jim's
final salary $ 600,000 and Jim has earned 30 years of
service,what retirement benefit 2014?
)$78,000
b.1$180.000
c.)$210,000
d.)$260,0
14,)Accent Inc sponsors a 25% money purchase pension
plan eligible carlos earns $200,000
earns 300,000
who earns 27,000.What i
contribution for the
under
age
50
a)$117 000
b,)$126 250
500
d.)$140,000
19. Knowledge star iso 30 year old company that has
grown significantly revenue and product
p pension that provides benefit
2% participation times average of
salary less an iffset The offset
equals 1% imes service times income below the
covered compensation limit of $40,000(assumed).Roberto
has orked with knowledge star for the last 30 ears and
earned $90,000 two years ago $110,000 last year and
$130,000 this year If retir ing this year how much
should he expect to receive as pension benefit.?
)$45,000
b.)$54,000
)$66,000
15.)Big Corp 401(k)plan that tallows for
hardship Sandre would like return
get She has 0000 in her
use but would like to take hardship
her 01(k)plan for the maxin um amount
available Sandra's program will take two years and cost 4
7,000 per year. Sandra's 401(K account balance $
20,000
,Sandra has never made
any
hardship
ributions her elective conte ributions
the plan
total $10,000.How much can Sandrawithdraw as o
hardship distribution?
b.)$7.000
c.)$10,000
d.)$20,000
20.)Aztec Clay is family owned business
that owned by Alice Bill Chad anc Zion Alice and Bill
over
employee
rather
silent
somewhat silent partner Alice Bil are mor and
Chad is their 25 year old son who has degree Soil
science from University Bangladash, Aztec
sponsors 401(K) plan. The employee census information
is ir the chart below.
Employee Ownership Salary
Annual
Account
statues
elective
balance
defermal
Alice
30% $330,000 $20,000 $400,000 Officer
Bil
$20,000
$600,000
Chad
$80,000 $10,000 $150,000
Dave
$180,000
$15,000 $150,000
Officer
Erin
0%
$140,000
$15
$100,000
Frank
0%
$50,000
$8,000
$50,000
Ginger 0%
$40,000 $0
$10,000
Haley
$30,000 $2,000 $30,000
Irish 0%
$20,000
$1,000
$10,000
Jen
0%
$20,000 $0
$5,000
$ 1,100,000 $91,000 $1,505,000
Assuming the company did not elect the exception to the
definition highly compensated employees the average
ADP of the highly compensated employees car be no
greater that what percent.
a,77,53%
c.)8.65%
d.)11.98%
22,) Sheehar works for Andy Company and superior
sales quy.His total ompensation this year is
600 000 Andy sponsors inteorated profi sharing olan
with base as the integration level How much will the
company contr ibute for Sheehan for 2014,
a.)$14,30
b.)$22,165
c.)$22,451
d.)$52,000
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13.) Answer: A...