The owner of Braxton Steel Corporation has been discussing installation of a legal services plan at Braxton. The owner has asked you to explain the features of an open-panel prepayment legal services plan. You reply

Will Hurt has an employer-provided health plan that has a $500 calendar-year deductible with a 3-month carryover provision. Will has $100 in medical bills in June that are covered by the plan. In late November, he has $100 additional medical expenses. Then in January, he has another $700 in medical expenses. Will’s health care plan will cover _____ of his expenses

Which of the following is (are) true regarding Section 401(k) plans?

Distributions from a traditional IRA cannot be made before the participant turns 59½ unless the IRA owner dies.

Which of the following options are good questions to ask about existing benefit plans?(I)Who is covered?(II)What benefits are provided?(III)How is the plan funded?(IV)Who administers the plan?

Jack Breem works for Metro Corp. Metro uses a calendar year accrual method of tracking financial transactions. Jack earned a bonus in December of this year. Which of the following is true?

Pam wants to use money from a traditional IRA for a down payment to purchase a first home. How much can she withdraw from her IRA without having to pay the federal early distribution penalty?

Seven years ago, Alten Tool and Die installed a profit sharing plan and a managed care plan. Three years ago, the director of Alten retired. The new director was an outside hire who changed several aspects of the business’s organization but left the existing benefit program in place. During the past 5 years, tensions among union and nonunion workers resulted in about 10% turnover in the workforce. The current set of workers is about 3 years younger, on average, than the previous set of workers. Which step in the employee benefit planning process has the director of Alten neglected?

Directors of Xenon Corporation are considering changing from a traditional defined benefit plan to another type of plan. They have asked you to explain the advantages and disadvantages of such a change. You explain that if Xenon Corp. converts to

Truth in Lending requirements apply to every loan an employer makes.