Under § 401, Which of the Following Is True Regarding

question 31

Multiple Choice

Under § 401, which of the following is true regarding a qualified retirement plan?

• A)Any employee who has reached 18 years of age must be eligible to participate after completing one year of service for the employer.
• B)The plan may not exclude an employee from participation because of a maximum age.
• C)The plan may exclude an employee who is a union member.
• D)The plan will provide sufficient coverage if it benefits at least two-thirds of all employees not considered highly compensated.

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Definitions:

Gifford Pinchot

An American forester and politician known for his advocacy of the sustainable management of natural resources.

Wildlife Preserves

Protected areas established to conserve wildlife and their habitats, ensuring biodiversity is maintained.

Louis Brandeis

A prominent American lawyer and Associate Justice of the Supreme Court (1916-1939), known for his advocacy of privacy, free speech, and against monopolies.

Unions

Organizations that represent the collective interests of workers, negotiating wages, working conditions, and benefits with employers.