Which of the Following Is True Regarding the Percent Test

question 24

Multiple Choice

Which of the following is true regarding the percent test, ratio test, and average benefits test?

• A) A plan must satisfy one or more of these to be qualified
• B) A plan must satisfy two tests to be qualified
• C) A plan must satisfy three tests to be qualified
• D) Even when it does not pass any test, a plan becomes qualified if the IRS allows it
• E) None of the above statements are true

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Definitions:

Parallel Play

A development stage in early childhood where children play adjacent to each other but do not interact.

Functional Play

A type of play primarily observed in children, characterized by activities that use repetitive muscle movements with or without objects, aiding in physical and cognitive development.

Peers

Individuals who are about the same age or level of maturity.

Liked

The state or condition of being favored, approved, or found agreeable by others, often used in the context of social media interactions.