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

Question

Quizplus · Accepted Answer

Employer-provided qualified retirement plans are generally referred to as defined benefit plans or defined contribution plans. Option A is incorrect as qualified retirement plans cannot discriminate against rank and file employees. Option B is incorrect as the contributions are generally not phased-out based on AGI. Option C is incorrect as executives are generally eligible to participate in these plans.

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