Special Vesting Rules Apply to Qualified Defined Contribution Plans with Voluntary

question 14

Multiple Choice

Special vesting rules apply to qualified defined contribution plans with voluntary employee contributions and matching employer contributions.Which of the following statements is (are) true with respect to these vesting rules?
I.Employer contributions must vest immediately.
II.Graded vesting is permitted,and employer contributions must be 20 percent vested after 2 years,with an additional 20 percent vested in each of the next 4 years.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Savings

Money that has been set aside for future use rather than being spent immediately, often put in a bank or invested for growth.

Memory

The mental function that enables individuals to retain, recall, and use past experiences or information.

Associative Cue

A stimulus or sign that is linked to and triggers the recall of information, memories, or responses.

Long-Term Memory

The stage of memory involved in the storage and retrieval of information over an extended period.