TOOLS & TECHNIQUES OF EMPLOYEE BENEFIT AND RETIREMENT PLANNING
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 B:
Employee Benefit Planning
Cafeteria Plans
Chapter 38:
Cafeteria Plan
True/False
38.1
Cafeteria plans must include a cash option.
38.2
If a cafeteria plan fails to meet nondiscrimination tests, otherwise non-taxable benefits
become taxable to all employees.
38.3
An employer must obtain approval from the IRS before offering a cafeteria plan.
Answers:
38.1
True [p. 339]
38.2
False [p. 340]
38.3
False [p. 341]
Multiple Choice
38.4
Advantages of a cafeteria plan include:
a.
cafeteria plans are relatively simple to design and administer
b.
cafeteria plans typically provide medical and life benefits
c.
cafeteria plans can be structured to meet a variety of employee benefit needs
d.
all of the above
e.
only a and c
Answer: C [p. 339]
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- Fall '11
- TAMMIMETZ
- Employee Benefit, Taxation in the United States, Cafeteria plan
-
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