In this assignment, you will be given several different scenarios. You will need to type on a separate sheet of paper which plan type you think would be best for each situation and why you have chosen that plan type. Each scenario will be worth 1 point. There are nine scenarios, so you will receive 1 extra point for turning the assignment in on time. Each scenario will have only one correct answer and you may not use the same plan type for more than one scenario. The plan types that you can choose from are: Straight Defined Benefit Plans Target Benefit Plans ESOP SIMPLE SEP 401(k) 403(b) Profit Sharing Plan Money Purchase Pension

Scenario #9

Two friends from high school have stayed in touch over the years. Their husbands are both very successful business professionals and they have an urge to do something creative. They have decided to open a boutique grocery store offering local produce, high-end meats, and imported cheeses. They plan on having 25-30 employees, most of whom will be part-time. They have been inspired by Starbucks and want to offer a retirement program from day one. They want the employees to be involved in contributing, and they are willing to match up to 3% of total compensation for those involved with the plan. What plan type is best for this potential client?