What type of qualified plan limits sponsored company stock to 10 percent and generally does not produce large contributions or deductions for older employees?

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Quizplus · Accepted Answer

Money Purchase Plans are qualified plans that limits sponsored company stock to 10 percent and generally does not produce large contributions or deductions for older employees. These plans are subject to minimum funding standards, whether or not the company made a profit. Forfeitures may be reallocated to remaining participants' accounts or applied to reduce employer contribution. The plan can be integrated with Social Security and although there is no guarantee of future benefits due to the investment risk resting on the employees, younger employees accumulate more than they would with a defined benefit plan.

What Type of Qualified Plan Limits Sponsored Company Stock to 10