This type of hybrid plan is based on income and years of service,uses individual accounts,passes the IRS's cross-testing rules and the total benefits are based on the investment performance of the plan's assets.(Target Benefit Plans)

Question

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Target benefit plans are the only type of hybrid plan that meets all the criteria mentioned in the question. Money purchase plans are based solely on contributions and do not vary based on factors such as years of service or investment performance. Age-weighted profit sharing plans allocate contributions based on age but do not necessarily use individual accounts or meet cross-testing rules. Cash balance plans are based on a fixed rate of return and do not use individual accounts or meet cross-testing rules.

This Type of Hybrid Plan Is Based on Income and Years