Question 4006 of 287 · Texas Life, Accident and Health Agent Exam

A qualified retirement plan is one that

Exactly one answer is correct.

Ameets IRS requirements, so employer contributions are tax deductible and earnings grow tax deferred
Bis available only to the self employed and not to corporations
Callows employees to withdraw funds at any age without a penalty or tax, depending on the class of risk involved
Dis established by the insurer rather than the employer

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Correct answer to question 4006

A: meets IRS requirements, so employer contributions are tax deductible and earnings grow tax deferred

Explanation

Qualified plans (for example 401(k) and pension plans) must meet ERISA and IRC rules. Contributions by the employer are generally deductible, and employees are taxed when benefits are distributed.

4007Which of these is an example of a nonqualified plan?
4008Key person life insurance is purchased by a business to
4009A buy-sell agreement funded by life insurance is intended to
4010In a cross purchase buy-sell arrangement among three partners,
4011The human life value approach to determining life insurance needs is based on
4012The needs approach to life insurance planning adds up

A qualified retirement plan is one that

Correct answer to question 4006

Explanation

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