QUESTION 19

Parrish Products would like to implement a retirement plan for its employees. The company has over 2,000 employees and would like to help them in saving for their retirement. The company chairman, Roger Parrish, is concerned about the administrative costs of the plan. He was recently informed by one of his colleagues that certain types of retirement plans are required to provide annuities to the participants and their beneficiaries. Which of the following qualified plans must provide qualified joint and survivor annuities (QJSAs) and qualified preretirement survivor annuities (QPSAs)?

Simplified employee pension (SEP)

Target benefit pension plan

Profit-sharing plan

Defined benefit pension plan

	A.	I, II, and IV
	B.	I, II, III, and IV
	C.	I and III
	D.	II and IV

QUESTION 20

Which of the following people would NOT be an eligible designated beneficiary for Tom?

	A.	Britt, Tom's brother. Britt is two years older than Tom.
	B.	Alice, Tom's wife.
	C.	Julie, Tom's child, age 30.
	D.	Sally, Tom's child, age 32. Sally was disabled at age 15.

QUESTION 21

Your client is considering how to pay for the last year of her child's college tuition. Her 401(k) balance is $87,000 and she has never borrowed from her retirement account before. How much of a loan could she take from her 401(k)?

	A.	$87,000
	B.	$20,250
	C.	$43,500
	D.	$50,000