RET.11.HO.5 - 2015MoneyEducation 11th Edition RETIREMENT...

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©2015 Money Education Retirement Planning, 11th Ed. Chapter 5 1 © 2015 Money Education CH 5 | Profit Sharing Plans 1 Retirement Planning and Employee Benefits CHAPTER 5: PROFIT SHARING PLANS 11 th Edition RETIREMENT PLANNING AND EMPLOYEE BENEFITS Michael A. Dalton | James F. Dalton © 2015 Money Education CH 5 | Profit Sharing Plans 2 Retirement Planning and Employee Benefits Chapter 5: Learning Objectives 1. Explain the basic purpose of profit sharing plans. 2. Understand the primary differences between pension plans and profit sharing plans. 3. Discuss the various methods of allocating profit sharing contributions to employee accounts including advantages and disadvantages of each method. 4. Explain why Social Security integration is permitted and how to apply it to a profit sharing plan. 5. Illustrate the impact of an age based formula on the allocation of contributions to a profit sharing plan. 6. Describe the basic elements of a new comparability plan. 7. Recommend an appropriate allocation method for a profit sharing plan based on a desired outcome. 8. Explain what a 401(k) plan is and when it would be an appropriate retirement plan for a business. 9. Explain the 401(k) deferral limits and how they impact the limits under IRC §415(c). 10. Describe the differences between Roth accounts and Roth IRAs. © 2015 Money Education CH 5 | Profit Sharing Plans 3 Retirement Planning and Employee Benefits 7 Types of Profit Sharing Plans Profit Sharing plans Profit Sharing Plan Stock Bonus Plan ESOP Thrift Plan Age Based Plan New Comparability Plan 401(k) plan
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