PLEASE ANSWER ALL THE QUESTIONS!

Case 2 Kryptonite is a telecommunication provider locate in Iowa with hundreds of thousands of employees. Their CEO, Clark Kline, is considering the replacement of their expensive defined benefit (DB) pension plan with a 401(k) where the employees will bear the investment risk. The majority of the workforce is young and the top executives are all in their 50's and 60's. 1. As Clark's top financial advisor, what type of qualified retirement plan would you recommend instead of the 401(k) if he wants the majority of the benefits to accrue to the top executives. ( 8 points) Commented [AR1]: LO: Student will be able to recommend an appropriate plan based on a desired 2. An intern who works for you recommends utilizing a DB/K plan. What is your opinion of using such a plan in this case? ( 6 points) 3. Who would benefit the most from the change away from the DB plan to a 401K ? (8 points) 4. What is the maximum contribution to a 401k of a worker age 56 , who earns $20,000 per year as a factory worker with Kryptonite? (8 points) Commented [AR4]: LO: Student will be able to explain the 401k deferral limits and how they impact the limits under IRC 415C. 5. Louis Kent has been with Kryptonite for 10 years but is nervous now that Clark has taken over operations. She wants to know her options regarding taking money out of the 401k at a later date. You correctly tell her that she can access her 401k funds without penalty under what seven circumstances? (10 points) Commented [AR5]: LO: Student will be able to explain 10% early withdrawal penalty and it's exceptions. 6. Clark has heard that the ADP testing is an issue for 401k plans. What are three ways to Commented [AR6]: LO: Student will be able to minimize this issue? (10 points) explain different ways to remedy if a plan fails the ADP test