Asked by Sydney Morehouse on Jun 27, 2024
Verified
In order to obtain and retain qualified status,a pension or profit-sharing plan must not discriminate in favor of highly compensated employees.
Qualified Status
A designation indicating that a person or entity meets the specific requirements set by law or regulations for a particular purpose or benefit.
Highly Compensated Employees
Employees who receive pay above a specific threshold set by the IRS, subject to additional rules and regulations for retirement plan contributions.
Pension
A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.
- Familiarize yourself with the criteria and regulations essential for maintaining qualified status in pension and profit-sharing arrangements.
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Learning Objectives
- Familiarize yourself with the criteria and regulations essential for maintaining qualified status in pension and profit-sharing arrangements.
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