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Mike Owns a Motorcycle Shop and Wants to Add a Benefit

Question 34

Multiple Choice

Mike owns a motorcycle shop and wants to add a benefit plan for his employees. He has heard about age-weighted plans and thinks this may be the best plan. What should Mike know about age-weighted plans?


A) They must be combined with a qualified retirement plan.
B) They are exempt from non-discrimination testing.
C) Employer contributions must be "substantial and recurring."
D) These plans are tested under cross-testing rules.

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