This topic contains a solution. Click here to go to the answer

Author Question: ________ provides protection to employees' beneficiaries only during a limited period. A) Term ... (Read 66 times)

bucstennis@aim.com

  • Hero Member
  • *****
  • Posts: 532
________ provides protection to employees' beneficiaries only during a limited period.
 
  A) Term life insurance
  B) Universal life insurance
  C) Whole life insurance
  D) Social Security survivor's insurance

Question 2

Discuss the basis for distinguishing between qualified plans and nonqualified plans. Be sure to provide definitions of each.
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Dominic

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

Answer: A

Answer to Question 2

Answer: Tax incentives encourage companies to offer pension programs. Some of the Employee Retirement Income Security Act (ERISA) of 1974 provisions set the minimum standards required to qualify pension plans for favorable tax treatment. Failure to meet any of the minimum standard provisions disqualifies pension plans for favorable tax treatment. Pension plans that meet these minimum standards are known as qualified plans. Nonqualified plans refer to pension plans that do not meet at least one of the minimum standard provisions; typically, highly paid employees benefit from participation in nonqualified plans. The current tax treatment of qualified plans continues to provide incentives both for employers to establish plans and for employees to participate in them. In general, a contribution to a qualified plan is deductible in computing the employer's or employee's taxes based on who made the contribution. Employees pay taxes only on the amount they withdraw from the plan each year.





 

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

For a complete list of videos, visit our video library