ITEM SET 6: QUALIFIED PLAN RULES Bubbles LLC is a web design company that operates out of Boulder, Colorado. Mark and Jeff started Bubbles twenty years ago and it has grown to be one of the more sizable web development firms in Colorado. Bubbles offers a 401(k) /profit sharing plan with a Roth account option. The plan has the following characteristics: Eligibility: age 21 and one-year of service Match: dollar for dollar match . . Vesting: 20% per year (years 1 through 5) Highly compensated definition: uses top 20% election Profit-sharing contribution: Bubbles generally makes a sizeable contribution, but the percentage varies. The plan has been amended to permit in-plan Roth rollovers. . The plan permits rollovers from other qualified plans and IRAs. EE# Employee Ownership Age Tenure Salary Deferral 1 Mark 60% 48 20 Years $200,000 $10,000 Jeff 30% 49 20 Years $150,000 $15,000 W N Chad 6% 33 15 Years $75,000 $5,250 Josh 4% 42 10 Years $85,000 $5,100 5 Alex 0% 58 8 Years $60,000 $0 Shay 0% 29 6 Years $75,000 $4,500 7 Lisa 0% 53 4 Years $50,000 $0 8 Alison 0% 19 2 Years $60,000 $0 Chung 0% 25 8 Months $24,000 $0 10 Chau 0% 19 6 Months $18,000 $0 Note: Shay is Jeff's daughter. She graduated from the art institute five years ago. 4. What type of Qualified Plan is Bubbles LLC