In Order to Obtain and Retain Qualified Status,a Pension or Profit-Sharing

question 114

True/False

In order to obtain and retain qualified status,a pension or profit-sharing plan must not discriminate in favor of highly compensated employees.

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Definitions:

Unemployment Benefits

Payments made by authorized bodies to unemployed people, intended to provide a temporary source of income while they seek new employment.

Social Security System

A government program that provides financial protection against economic risks (e.g., retirement, disability, unemployment) to its citizens.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable amount increases, resulting in higher earners paying a larger percentage of their income in taxes than lower earners.

EBT Cards

Electronic Benefit Transfer cards used by state welfare departments to issue benefits, such as food stamps and cash assistance, electronically.