April Showers, age 30, opened the Unique Boutique 5 years ago. April has 5 employees ranging in age from 25 to 42. Earnings have fluctuated. Profits have been made only in the last two years. April:
a. Should not have a defined benefit plan because it is designed for older business owners
b. Should have a defined benefit plan because it will maximize April's tax deduction
c. Should not have a defined benefit plan because there are a large number of years until the owner or employees retire
d. Should have a defined benefit plan because the owner can get $1,500 tax credit for establishing a new retirement plan
e. Should not establish a defined benefit plan because it is not likely April can meet the annual funding requirements

Answer rating: 100% (QA)

Correct answer should not establish a defined benefit plan because it is not likely Ap... View the full answer