Type of plan: Statutory hybrid planAccount balance: The sum of pay credits and interest creditsPay credits: 3% of annual pay, credited at the end of the yearInterest credits: Equal to the actual annual rate of return on plan assets multiplied by the beginning of year account balance Vesting: The minimum vesting schedule allowedData for participant Smith: Date of hire 1/1/2008 Date of termination 12/31/2011 Compensation (each year) $50,000 Historical returns on plan assets: 2008 8% 2009 6% 2010 2% 2011 ?22% The plan provides for a lump sum in the amount of the vested account balance.In what range is Smith's lump sum payable at 1/1/2012?
A) Less than $3,650
B) $3,650 but less than $4,450
C) $4,450 but less than $5,250
D) $5,250 but less than $6,050
E) $6,050 or more
Correct Answer:
Verified
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