$3\mathrm{.}6\%$

$4\mathrm{.}8\%$

$6\%$

$6\mathrm{.}4\%$

Multiple Choice $2\mathrm{.}5$ points

Qualified plan documents can be written to accommodate plan forfeitures in different ways. Which of the following statements is correct?

Stock bonus 'plans always allocate plan forfeitures to participants' accounts since it is a stock plan.

Plans following the $2-$year eligibility rule never allocate plan forfeitures to participants' accounts

Defined benefit plans $($but not cash balance plans$)$ have two options to deal with forfeitures

Employers can use the forfelted funds to pay other expenses of the business outside the qualified plan.

$$

M aitiple Choice $2\mathrm{.}5$ points

Which of the following vesting schedules may a top$-$heavy qualified cash balance plan use?