Which of the Following Is Not True Regarding Minimum Standards

question 62

Multiple Choice

Which of the following is not true regarding minimum standards under the Employee Retirement Income Security Act?

• A)The minimum standards for pension plans must be met for the employee pension plans to  qualify for preferential tax treatment.
• B)Preferential tax treatment enables an employer to deduct contributions to qualified benefit plans immediately.
• C)ERISA does not consider the deductions as income to participating employees until they receive the payments after retirement.
• D)Compliance to ERISA minimum standards by qualifying their benefit plans is mandatory.

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Definitions:

Truth in Lending Act

A federal law designed to promote informed use of consumer credit by requiring disclosures about terms and costs.

Cease-and-Desist Order

A legal injunction issued by a court or government agency ordering an individual or entity to stop an alleged illegal activity.

Deceptive Advertising

Marketing strategies that trick or misinform customers regarding the qualities, features, or advantages of a product or service.

Cease-and-Desist Order

A legal injunction ordering an individual or organization to stop engaging in a specified activity or behavior.