A “listed transaction” is:

Well Corporation has a life insurance policy on the life of the owner Ben Well as part of his defined benefit plan. Ben plans to retire in five years at the age of 65. At that time, he will receive $2,000 per month. The face value of his insurance policy is $210,000. The IRS will treat Ben’s life insurance plan as an incidental death benefit.

Contribution limits for a SIMPLE IRA are the same as other qualified plans, but with less administrative cost.

It is always better to roll over qualified plan assets to an IRA rather than keep the assets in the plan.

Which of the following requirements must be met in order for a severance pay plan to be considered a welfare benefit plan for ERISA purposes?(I)payments are not contingent upon retirement(II)total payments do not exceed twice the employee’s annual compensation for the immediately preceding year(III)all payments are completed within 24 months after employment ends(IV)payments must be completed within 36 months after employment ends

An employer can make contributions to the SIMPLE IRA of an employee who is 72 years old.

Late last year, a hurricane along the North Carolina coast devastated several coastal towns. Rebuilding efforts in the region earlier this year have boosted profits of nearby Benson Lumber Company to triple the profits of the previous year. The CEO and two highly paid executives at Benson have an established agreement with the company, which returns 30% of net profit to them in addition to their base salary. If demand continues through the rest of the year, the three top executives at Benson will receive three times last year’s salary. Benson’s best case for establishing “reasonableness of compensation” is

Objectives that employers have for benefit plans include

June Tandy is covered under a SIMPLE IRA at Barker Jones Auction House where she is employed. This year, no salary deductions or employer contributions were allocated to her SIMPLE IRA. If June makes a contribution to her personal IRA this year, her deduction limit will be based on those applying to a person who is not an active participant in a qualified retirement plan.

Which of the following are advantages of cash compensation?(I)it must meet the reasonableness test for deductibility(II)it is easier to budget than non-cash benefits(III)ERISA regulations are not normally involved(IV)cash compensation paid currently is currently taxable as ordinary income