Qualified Employee Benefit Plans

A) A SIMPLE plan may be adopted by an employer that had __ or fewer employees who received at least

________ in compensation from the employer in the preceding year.

100, $5,000

100,$10,000

200,$5,000

200,$10,000

B) For the 2010 tax year, the maximum amount an employer can contribute to a defined contribution plan on behalf of an employee is:

100% of the employee's compensation (average of highest 3 years, limited to $245,000), or the present amount to fund an annual retirement benefit of $195,000

$49,000

100% of the employee's compensation

The lesser of b. or c.

C) A plan determines in advance the amount the employer will contribute to the plan.

Defined benefit plan

Defined contribution plan

Cash balance plan

Hybrid pension plan