Purpose

This assignment is intended to help you learn to do the following:

• Identify other tax-advantaged plans.
• Compare and contrast qualified plans with other tax-advantaged plans.
• Explain how SIMPLEs work and when they should be considered.
• Compare the similarities and differences between 403(b) plans and 401(k) plans.
• Describe how the deferral limits for SIMPLEs, SARSEPs, 401(k) plans and 403(b) plans work together.
• Differentiate between private and public eligible 457 plans as well as ineligible 457 plans.

Action Items

1. Make sure that you study Chapter 10 in the textbook before you start working on this assignment.
2. Respond to the following questions in Chapter 15 of your textbook:
   1. Item Set 5: ISOs and NQSOs Questions 1-6.
   2. Item Set 6: Qualified Plan Rules Questions 1-8.
   3. Item Set 7: 403(b) Plans Questions 1-2.

ITEM SET 7: 403 (b) PLANS Manuel, age 46, works for the local public school teaching Physics to advanced science high school students. Manuel has been with the school for 21 years, earns $65,000 per year, and has never contributed to the 403(b) retirement plan that is offered. The 403(b) plan offers dollar-for-doliar matching on all contributions. The school district is considering adopting a 457 plan. 1. Which plan will offer Manuel the highest tax deferral in 2022 ? Answer: 2. If Manuel's spouse makes enough money for them to live on and they decide to save as much of his income as possible, how much is the maximum that he can defer in tax-deferred retirement savings vehicles assuming the school adopts the 457 plan? 3. What type of investments is Manuel permitted to make in the 403[b) plan? Answer: 4. What type of employers may adopt a 403(b) plan? Answer: 5. What types of employees benefit the most from the implementation of a 403(b) plan? Answer: ITEM SET 7: 403 (b) PLANS Manuel, age 46, works for the local public school teaching Physics to advanced science high school students. Manuel has been with the school for 21 years, earns $65,000 per year, and has never contributed to the 403(b) retirement plan that is offered. The 403(b) plan offers dollar-for-doliar matching on all contributions. The school district is considering adopting a 457 plan. 1. Which plan will offer Manuel the highest tax deferral in 2022 ? Answer: 2. If Manuel's spouse makes enough money for them to live on and they decide to save as much of his income as possible, how much is the maximum that he can defer in tax-deferred retirement savings vehicles assuming the school adopts the 457 plan? 3. What type of investments is Manuel permitted to make in the 403[b) plan? Answer: 4. What type of employers may adopt a 403(b) plan? Answer: 5. What types of employees benefit the most from the implementation of a 403(b) plan