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Joey Has Been an Active Participant in a Defined Benefit

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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 (assume there are fewer than 100 participants).
b.Assume that Joey's average compensation for his three high years is $203,000. Calculate Joey's maximum allowable benefits.


Definitions:

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A psychological disorder characterized by an intense fear of gaining weight and a distorted body image, leading to extreme diet restriction and excessive weight loss.

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A state or condition of being preoccupied or obsessed with something, leading one's attention to be absorbed by it.

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A desire or unconscious inclination towards one's own death or self-destruction.

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