To Qualify as a Nondiscriminating Defined Contribution Plan,it Must Meet

question 40

Multiple Choice

To qualify as a nondiscriminating defined contribution plan,it must meet which two safe harbors? (Defined Contribution Plans)

• A)Base contribution formula or collateral contribution formula
• B)Fixed first-dollar-of-profits formula or graduated first-dollar-of-profits formula
• C)Uniform allocation formula or uniform points allocation formula
• D)Profitability threshold formula or the backloading formula

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Definitions:

Strike Price

The price stated in the option contract at which the security can be bought (or sold). Also called the exercise price.

Premium

An amount paid in addition to the standard or nominal cost, often for insurance, bonds, or superior products or services.

Put-Call Parity

A principle stating the relationship between the prices of European put and call options with the same strike price and expiration date.

Put Options

Financial contracts that give the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.