Marla wants to start a qualified money purchase plan, but she doesn't know much about them beyond what her friend informed her of. What is true about these plans?

Question

Quizplus · Accepted Answer

It is true that qualified money purchase plans can be integrated with Social Security. Additionally, Employer is required to make contributions based on contribution formulas, the plan is subject to minimum funding standard, whether or not the company made a profit, forfeitures may be reallocated to remaining participants, investment in sponsoring company's stock in limited to 10 percent, and since there are no guarantee of future benefits; the investment risk rests on the employee.

Marla Wants to Start a Qualified Money Purchase Plan, but She