Joey Has Been an Active Participant in a Defined Benefit

question 95

Essay

Joey has been an active participant in a defined benefit plan for 21 years.During his last 5 years of employment, Joey earned $32,000, $48,000, $55,000, $95,000, and $105,000, respectively (representing his highest-income years).
a.Calculate Joey's maximum allowable benefits from this qualified plan in 2019 (assume there are fewer than 100 participants).
b.Assume that Joey's average compensation for his three high years is $203,000.Calculate his maximum allowable benefits.

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Definitions:

Siphons

Structures in some aquatic organisms that facilitate the exchange of water or air, often used for feeding, breathing, or locomotion.

Polychaete

A member of the class Polychaeta, these are marine annelid worms characterized by their segmented bodies, many with paired, paddle-like appendages called parapodia for movement and breathing.

Oligochaete

A class of annelids comprising earthworms and related species, characterized by having few setae (bristles) per segment.

Bivalvia

Bivalvia is a class of marine and freshwater mollusks with bodies enclosed by a two-part hinged shell, including clams, oysters, mussels, and scallops.