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1. All the following are reasons that an employer is considered an interested party in retirement planning except:

1. Retirement plans are inexpensive and are easily added to compensation.

2. Retirement plans have the ability to attract, retain, and reward qualified employees.

3. All of these are reasons that an employer is considered an interested party All of the above are reasons that an employer is considered an interested party

4. Most employers view employer-sponsored retirement plans and employee benefits as part of employee compensation Most employers view employer-sponsored retirement plans and employee benefits as part of employee compensation

1. What percentage of pay will be deducted for the Medicare portion of Social Security tax for a worker who is not self-employed?

Group of answer choices

1. 6.2%

2. 2.9%

3. 7.65%

4. 1.45%

3. Social Security taxes, including Medicare taxes, are paid by both the employer and the employee on the total amount of an employee's wages.

Group of answer choices

1. True

2. False

1. To earn four quarters of coverage under the Social Security system, a worker must earn $1,510 (2022) each quarter during the calendar year.

Group of answer choices

1. True

2. False

1. Mark, born in 1955, wishes to begin social security benefits as soon as he reaches full retirement age. At what age is he first eligible for unreduced retirement benefits?

Group of answer choices

1. 66 years, 2 months

2. 67 years

3. 65 years, 2 months

4. 62 years

1. The value of lodging provided to an employee is excluded from the employee’s taxable income if:

A. The lodging is furnished on the employer’s business premises

B. The lodging is furnished for the convenience of the employer

C. The employee is required to accept the lodging as a condition of employment

D. All of the above

Group of answer choices

1. D only

2. B only

3. A only

4. A and C

1. Marcus works for Nationwide downtown. As an employee benefit, he is provided an annual parking pass valued at $4,000. What is the maximum amount of the benefit Marcus can exclude from his gross income each year?

Group of answer choices

1. $300

2. $3,600

3. $4,000

4. $3,000

1. For group-term life insurance, premiums paid by the employer on the first $_____ of death benefit are deductible by the employer and are excluded from the employee’s gross income.

Group of answer choices

1. $100,000

2. None of the premiums for group term life benefits are taxable to the employee.

3. The total amount of the premiums paid for group term life benefits are taxable to the employee.

4. $50,000

1. When planning for retirement, it is important to consider that which of the following expenses will likely increase?

Group of answer choices

1. Dry cleaning costs

2. Healthcare costs

3. Social Security taxes

4. Annual savings

10. What is/are the requirement(s) for an owner employee to be considered highly compensated?

A. An owner of >5%

B. Compensation in excess of $135,000 (2022)

Group of answer choices

1. Both A and B

2. A only

3. B only

4. It's complicated

1. Which employee is not eligible to participate in XYZ Corporation's qualified profit sharing plan?

Group of answer choices

1. Steve, a 20 year old, who has worked at XYZ Corporation for 2 years.

2. Stacy, a 24 year old, who has worked at XYZ Corporation for 10 years.

3. Nick, a 43 year old, who has worked at XYZ Corporation for 10 years.

4. Nancy, a 21 year old, who has worked at XYZ Corporation for 2 years.

1. The Safemore Company has 3 employees. Assume it has an age-based profit-sharing plan. The employees are listed below, along with covered compensation. Assume that the interest rate used to calculate the PV is 8.5%/year. Assume that the PV calculation is based on a normal retirement age of 65.  The owner, employee A, wants the total dollar contribution to his plan to be the maximum for 2022, $61,000, with the same percent of age-weighted compensation applied to the age-weighted contribution of other employees. Fill in the rest of the table below.

1. What is an advantage of Stock Bonus Plans?

Group of answer choices

1. Gives participants vested interest in the performance of the company.

2. Value of employee stock contributed is tax-deductible for the employee.

3. Risks to employee participants are minimized as they have more control over the performance of their investment.

4. Employer does not incur valuation costs at contribution of stock.

1. The put option ______ the employee's risk but ______ the employer's cash requirements.

Group of answer choices

1. increases; reduces

2. reduces; increases

3. doubles; reduces

4. reduces; doubles

1. Jadon has $120,000 in vested plan benefits. His employer's qualified retirement plan allows for loans. He borrowed $10,000 on June 20th, 2021 to help pay for his son's college tuition. On March 19th of 2022, he plans to take out another loan. What is the maximum amount Jadon can borrow in March?

Group of answer choices

1. $60,000

2. $40,000

3. $50,000

4. There is no limit because the funds are being used for qualified higher education expenses.

1. On April 14th, 2023, Clara turns 72 years old. She is single, retired, and has $1,000,000 in her IRA. What is the amount of Clara's required minimum distribution (RMD) for 2022?

1. Charmaine and Neville are married and file their taxes jointly. Charmaine is a CFO who earns $165,000 per year and is an active participant in her employer’s qualified plan. She also has consulting income of $15,000 per year. Neville is a racecar driver with no taxable income. Can Neville contribute to a traditional IRA and is it deductible?

Group of answer choices

1. Neville can make a contribution to a Roth IRA.

2. Neville can make a spousal contribution to a traditional IRA but it is not deductible.

3. Neville cannot make a contribution to a traditional IRA.

4. Neville can make a spousal contribution to a traditional IRA and it is deductible.

1. Amari is single, age 43, and is an active participant. Her adjusted gross income (AGI) in 2022 is $74,000. Amari made the maximum contribution to her traditional IRA. Can Amari deduct the IRA contribution? If so, how much?

1. In 2023, Tom was recruited by a start-up company who highly desired his skill set. He was offered a salary considerably higher than that of his current job, along with a significant signing bonus. He took the job. Tom had already maximized the contribution to his Roth IRA but, due to his unanticipated financial windfall, he is no longer eligible to make the maximum contribution. What are the penalties Tom may face if he takes no action? And, what are his options for correcting this issue?