A defined benefit retirement plan covers 72% of the non-highly compensated individuals. The plan benefits 48 of the 131 employees. Which is true?
A)The 70% coverage requirement is not met.
B)The plan meets the minimum participation test.
C)The plan meets the 70% coverage requirement, but fails the minimum participation test.
D)The plan does not meet the 70% coverage requirement, but does meet the minimum participation test.
E)None of the above is true.

Question

Quizplus · Accepted Answer

The Answer of A defined benefit retirement plan covers 72% of the non-highly compensated individuals. The plan benefits 48 of the 131 employees. Which is true?
A)The 70% coverage requirement is not met.
B)The plan meets the minimum participation test.
C)The plan meets the 70% coverage requirement, but fails the minimum participation test.
D)The plan does not meet the 70% coverage requirement, but does meet the minimum participation test.
E)None of the above is true.

A Defined Benefit Retirement Plan Covers 72% of the Non-Highly