AAMS Module 9 Deferred Compensation and Other Benefit Plans for Key Executives Exam Practice Questions and Answers
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Course
AAMS
Institution
AAMS
AAMS Module 9 Deferred Compensation and
Other Benefit Plans for Key Executives Exam
Practice Questions and Answers
What are the major differences between qualified plans and nonqualified
plans? - Answer️️ -a. Nonqualified plans may be established by either an
employer or an employee.
b. N...
AAMS Module 9 Deferred Compensation and
Other Benefit Plans for Key Executives Exam
Practice Questions and Answers
What are the major differences between qualified plans and nonqualified
plans? - Answer✔️✔️-a. Nonqualified plans may be established by either an
employer or an employee.
b. Nonqualified plans may be discriminatory.
c. Nonqualified plans are exempt from some (such as participation and
vesting requirements), but not all, ERISA requirements.
d. An employer may not claim a deduction for a contribution to a
nonqualified plan until the employee-participant includes the benefit as
taxable income.
e. An employee-participant's salary contributions to a nonqualified plan
are tax deferred only if the funds are at risk (i.e., if unfunded, subject to the
claims of the employer's creditors or, if funded,
f. The earnings on investments attributable to an informally funded (or
formally funded) nonqualified plan are taxed to the employer unless the
investment itself is nontaxable.
g. Nonqualified plans are not portable and cannot be rolled over into an
IRA. Money from qualified plans can be rolled over into an IRA. Return to
question
excess benefit plans - Answer✔️✔️-An excess benefit plan is a nonqualified
deferred compensation plan that provides benefits in excess of that to
which the employee would otherwise be entitled. For example, an
employee's benefits
provided by a company's qualified retirement plan may be limited by the
Section 415 limits on contributions and benefits.
supplemental executive retirement plans - Answer✔️✔️-A supplemental
executive retirement plan (SERP) is an unfunded nonqualified deferred
compensation plan that provides retirement and disability benefits for
high-level executives in excess of those
provided by the employer's qualified retirement plan, usually a defined
benefit plan.
top hat plans - Answer✔️✔️-A top hat plan is a type of SERP that is
unfunded and provides
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