1a. You are meeting next week with Mr. Arnold Jones who does not have a retirement plan. How will you prepare for this meeting?

2. Write a memorandum to Mr. Jones and include the answers to these questions.

What is meant by the term “deferred compensation”? Explain this in a memorandum to the client for him to review prior to the meeting.

Qualified plans are a form of deferred compensation.

2A. What are the advantages of qualified plans? (list – do not explain)

2B. What special requirements must a plan meet to be a qualified plan? (List – do not explain)

3. What are the disadvantages in general of a qualified plan?

4. What is a defined contribution plan? Explain in detail with examples.

5. What is ERISA? How does ERISA protect employees?

6. What is a cash balance plan? Explain in detail in your own words.

7. What is a defined contribution plan? Explain in detail in your own words.

8. What is a pension plan? How does a pension plan differ from a profit sharing plan?

9. What type of plan must always meet funding standards? Under what section of the Internal Revenue Code (IRC) are there standards required? Again detailed explanation is required.

10. What is a highly compensated employee?           

11. What effect does a highly compensated employee have on the minimum vesting requirement?

12. What is the maximum amount that a self-employed individual can contribute to a Keogh plan in 2014? 2015? 2016?

13. When can a Keogh plan include a 401 (k) plan?

14. Describe in detail the process to get a plan qualified for I.R.S. purposes.