Chapter 15 - TOOLS & TECHNIQUES OF EMPLOYEE BENEFIT AND...

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9th Edition College Course Materials Deanna L. Sharpe, Ph.D., CFP®, CRPC®, CRPS® Associate Professor CFP® Program Director Personal Financial Planning Department University of Missouri-Columbia Please Note : Correct answers for each question are indicated in bold type. After each question, the number of the page containing information relevant to answering the question is given. When a calculation is necessary or the reasoning behind a given answer may be unclear, a brief rationale for the correct answer is also given. Part A: Retirement Planning Defined Contribution Plans Chapter 15: Money Purchase Pension Plan True/False 15.1 A money purchase plan provides adequate retirement benefits for all older employees. 15.2 A money purchase plan must provide a joint and survivor annuity as the automatic form of benefit. 15.3 A self-employed person with less than 10 employees can use a money purchase plan to fund his or her own retirement. Answers: 15.1 false [p. 155] 15.2 true [p. 158] 15.3 true [p. 159] Multiple Choice 15.4 Advantages of a money purchase plan from the employer’s point of view include which of the following: a. ability to use employee salary reductions or before-tax bonuses to decrease employer contribution to the plan b. tax deduction when contributions made to employee account
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Chapter 15 - TOOLS & TECHNIQUES OF EMPLOYEE BENEFIT AND...

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