Which of the following statements is true regarding employer-provided qualified retirement plans?
A) Executives are generally ineligible to participate in these plans.
B) Deductible contributions are generally phased-out based on AGI.
C) They are generally referred to as defined benefit plans or defined contribution plans.
D) May discriminate against rank and file employees.

Question

Quizplus · Accepted Answer

Employer-provided qualified retirement plans can be either defined benefit plans or defined contribution plans. Option A is incorrect because executives are generally eligible to participate in these plans. Option B is incorrect because deductible contributions are limited by IRS contribution limits, not by AGI. Option D is incorrect because qualified plans must follow strict anti-discrimination rules to ensure that all eligible employees have an equal opportunity to participate in and receive benefits from the plan.

Which of the Following Statements Is True Regarding Employer-Provided Qualified