MULTIPLE CHOICE 13.All of the following are true regarding tax implicatons of cash balance plans, except a. employer contributions to the plan are deductible when made b. taxation of the employee on employer contributions is deferred c. the plan is not subject to minimum funding rules of the Internal Revenue Code d. certain employers who adopt a cash balance plan may be eligible for a business tax credit up to $500 e. employees may make voluntary contributions to a “deemed IRA” established under the plan 14.Which of the following is (are) true regarding elective deferrals in a Section 401(k)? a.elective deferrals are not subject to Social Security and Federal Unemployment payroll taxes b.elective deferrals are always made on an after-tax basis c.if the company elects to have a safe harbor plan, elective deferrals must meet the actual deferral percentage test d.account funds can be withdrawn without a premature distribution penalty if the employee becomes disabled or dies e.since employees elect the amount of funds to defer, nondiscrimination tests do not apply to elective deferrals 15.Which of the following types of employer plans are exempt from most or all ERISA provisions? a. plans of state, federal, or local governments or governmental organizations b. plans of churches, synagogues, or related organizations c. plans maintained solely to comply with workers’ compensation, unemployment compensation, or disability insurance laws d.all of the above e. none of the above because no employer plans are exempt from ERISA provisions 16.Irrevocable Life Insurance Trusts (ILIT) are primarily designed to ensure that the death benefit is excludable from the insured’s federal gross estate. a. true b. false 17. All of the following approaches are commonly used to increase the security of benefits for an employee under a nonqualified deferred compensation plan, except a.employer’s general assets b.reserve account maintained by employer c.third-party guarantees d.corporate-owned life insurance e.employer reserve account with employee investment direction 18. Paul owns the following property: a. Boat (fee simple) b. Condominium on the beach (tenancy in common with his brother and sister) c. House and two cars with his wife, Karen (tenancy by the entirety) d. Checking account with his son, William (POD) e. Karate business (JTWROS with his partner, Mike) Which item(s) will go through probate, if any? 19. Two brothers have consulted you about the purchase of a lakefront cottage. The brothers plan to use the cottage on a seasonal basis. They are unsure of how they should title the property. Which of the following items of information do you need to obtain before making a recommendation? 1. The purchase price of the cottage 1. How much each brother plans to contribute toward the purchase of the cottage 1. Whether the brothers want their interest in the cottage to pass under their wills when they die ...

1. MULTIPLE CHOICE
13.All of the following are true regarding tax implicatons of
cash balance plans, except
a. employer contributions to the plan are deductible when made
b. taxation of the employee on employer contributions is
deferred
c. the plan is not subject to minimum funding rules of the
Internal Revenue Code
d. certain employers who adopt a cash balance plan may be
eligible for a business tax credit up to $500
e. employees may make voluntary contributions to a “deemed
IRA” established under the plan
14.Which of the following is (are) true regarding elective
deferrals in a Section 401(k)?
a.elective deferrals are not subject to Social Security and
Federal Unemployment payroll taxes
b.elective deferrals are always made on an after-tax basis
c.if the company elects to have a safe harbor plan, elective
deferrals must meet the actual deferral percentage test
d.account funds can be withdrawn without a premature
distribution penalty if the employee becomes disabled or dies
e.since employees elect the amount of funds to defer,
nondiscrimination tests do not apply to elective deferrals
15.Which of the following types of employer plans are exempt
from most or all ERISA provisions?
a. plans of state, federal, or local governments or governmental
organizations
b. plans of churches, synagogues, or related organizations

2. c. plans maintained solely to comply with workers’
compensation, unemployment compensation, or disability
insurance laws
d.all of the above
e. none of the above because no employer plans are exempt
from ERISA provisions
16.Irrevocable Life Insurance Trusts (ILIT) are primarily
designed to ensure that the death benefit is excludable from the
insured’s federal gross estate.
a. true
b. false
17. All of the following approaches are commonly used to
increase the security of benefits for an employee under a
nonqualified deferred compensation plan, except
a.employer’s general assets
b.reserve account maintained by employer
c.third-party guarantees
d.corporate-owned life insurance
e.employer reserve account with employee investment direction
18. Paul owns the following property:
a. Boat (fee simple)
b. Condominium on the beach (tenancy in common with his
brother and sister)
c. House and two cars with his wife, Karen (tenancy by the
entirety)
d. Checking account with his son, William (POD)
e. Karate business (JTWROS with his partner, Mike)
Which item(s) will go through probate, if any?
19. Two brothers have consulted you about the purchase of a

3. lakefront cottage. The brothers plan to use the cottage on a
seasonal basis. They are unsure of how they should title the
property. Which of the following items of information do you
need to obtain before making a recommendation?
1. The purchase price of the cottage
1. How much each brother plans to contribute toward the
purchase of the cottage
1. Whether the brothers want their interest in the cottage to pass
under their wills when they die
1. 1 and 2
1. 3 only
1. 1, 2, and 3
1. 2 and 3
20. Are all of the items listed below reasons why having a will
is important? (True or False)
a. The state directs how the decedent’s property is transferred
b. A spouse’s share of the decedent’s estate may be equal to a
child’s
c. Children may be treated equally although not equitably
d. May require the appointment of an administrator who will
usually have to furnish a surety bond, thereby raising the costs
of administration
e. The administrator of the estate is determined by the court
21.Annual additions to an age-weighted plan include
a.employer contributions to participants’ accounts
b.employee contributions to own account
c.forfeitures from other accounts
d.only a and b
e.all of the above

4. 22.Which plan has benefit levels that are guaranteed by both the
employer and the Pension Benefit Guaranty Corporation
(PBGC)?
a.money purchase plan
b.target benefit plan
c.cross tested plan
d.defined benefit plan
e.tax-deferred annuity
23.Advantages of defined benefit plans include all of the
following, except
a. defined benefit plans are easy to design and easy to explain to
employees
b. employees obtain a tax-deferred retirement savings medium
c. retirement benefits at adequate levels can be provided for all
employees regardless of age
d. benefit levels are guaranteed both by the employer and, for
some plans, by the PBGC
e. for an older highly compensated employee, a defined benefit
plan will allow the maximum amount of tax-deferred retirement
saving
24.Which of the following is (are) true regarding the tax
implications of having a money purchase plan?
a.employer contributions and plan earnings are tax-deferred for
the employee
b.employers beginning a new plan are eligible for a $2,500
business tax credit in the first year to help with startup costs
c.the employer tax deduction is limited to 25% of total payroll
of the employees covered under the plan
d.only a and b
e.only a and c

5. 25.All of the following are true regarding money purchase
plans, except
a. most money purchase plan benefit formulas use a factor
related to the employee’s service that favors owners and key
employees
b. nondiscrimination regulations provide a safe harbor for
money purchase plans
c. a plan benefit formula can be integrated with Social Security
d. forfeitures, unvested amounts left behind by employees in
their plans, can be used to reduce future employer contributions
e. money purchase plan funds are generally invested in a pooled
account managed by the employer or a fund manager selected by
the employer
26.A tax-free rollover of a Roth IRA can be made to
a.another Roth IRA
b.a traditional IRA
c.a tax-deferred annuity
d.a and b
6.a and c
27.Ways that a Roth IRA differs from a traditional IRA include:
a.initial investment and earnings can be withdrawn tax-free
b.Roth IRA contributions can be made past age 59½
c.Roth IRAs are never subject to minimum distribution rules
d.a and b
e.a and c
28.Directors of Xenon Corporation are considering changing
from a traditional defined benefit plan to another type of plan.
They have asked you to explain the advantages and

6. disadvantages of such a change. You explain that if Xenon
Corp. converts to
a.a defined contribution plan, most or all plan assets would be
credited immediately to vested employees
b.a cash balance plan, Xenon Corp. must increase the level of
contribution to older employees
c.a cash balance plan, Xenon Corp. would no longer need
actuarial services
d.only a and b
e.only a and c
29.Maxton Manufacturing, Inc., uses prior year testing to
monitor discrimination in its Section 401(k) plan. Last year,
the actual deferral percentage (ADP) for all nonhighly
compensated employees at Maxton was 4%. This year, the ADP
for highly compensated employees at Maxton can be as high as
a.2%
b.4%
c.5%
d.6%
e.8%
30.The retirement plan for Bethel Shalom synagogue must
adhere to ERISA reporting and disclosure rules.
a.true
b.false
31.Harper Engineering, Inc., offers several benefits to
employees. Which of its benefits would be exempt from the
ERISA reporting and disclosure requirements?
a.Harper pays for life insurance to provide for employee
dependents if the employee dies
b.Harper gives each employee a small gift worth less than $5 on
St. Patrick’s Day

7. c.Harper has a scholarship program that pays for employee
tuition for industry-relevant continuing education, based on the
employee passing the course, out of the employer’s general
assets
d.b and c
e.a and c
32.Sentenal Corp., a restaurant supply company, is a closely
held business. Tom Brady, founder and owner of the business is
59. Jeff Alcorn, age 53, is a key employee. The business
employs 10 other rank-and-file employees earning an average of
$30,000 per year. Both Tom and Jeff would like to contribute
between $30,000 and $40,000 per year to a qualified retirement
account. The advantages of using a profit sharing, age-weighted
plan at Sentenal rather than a defined benefit plan include:
a.the age-weighted plan is simpler to install
b.the age-weighted plan is less expensive to administer
c.the age-weighted plan allows more flexibility in plan
contributions
d.all of the above
e.only a and b
33.The law firm of Willie, Cheatum, and Howe is structured as
a professional corporation that has three key employees between
ages 39 and 43, two law clerks in their late 20s, and two
secretaries, both age 31. The three key employees earn $500,000
per year. The law clerks are paid $30,000 and the secretaries
are paid $15,000 annually. Turnover for both the law clerks and
secretaries has been rather high, with at least one law clerk and
one secretary leaving about every 6 months for the past year.
Characteristics of the firm that would make a cross-tested plan a
less than optimal solution for the firm include
a.the plan would have to be reconsidered at each new hire
b.the plan would provide relatively few advantages given the

8. age of the highly compensated group
c.having more than one highly compensated employee makes
coverage tests related to the plan more difficult to apply
d.all of the above
e.none of the above
34.Shannon McDougal will retire December 31 of this year.
Shannon has worked for Shamrock Construction for 30 years.
During his last 5 years, he earned $40,000, $47,000, $44,000,
$46,000, and $48,000. Shamrock’s retirement plan uses a unit
credit formula that awards employees 1.5% for each year of
service using a financial average of the last 3 years. Shannon’s
annual benefit will be:
a.$19,500
b.$20,250
c.$20,700
d.$21,150
e.$21,600
35.April Showers, age 30, opened the Unique Boutique 5 years
ago. April has five employees ranging in age from 25 to 42.
Earnings have fluctuated. Profits have been made only in the
last two years. April should
a.not have a defined benefit plan because it is designed for
older business owners
b.have a defined benefit plan because it will maximize April’s
tax deduction
c.not have a defined benefit plan because there are a large
number of years until the owner or employees retire
d.have a defined benefit plan because the owner can get $1,500
tax credit for establishing a new retirement plan
e.not establish a defined benefit plan because it is not likely
April can meet the annual funding requirements

9. 36.Mandy Thomas, age 47, is the owner of The Golf Pro Shop.
Mandy wants to retire at age 55. The company adopted a
defined benefit plan 2 years ago, 3 years after the business
opened. Mandy wants to increase the amount that she
contributes to her own retirement. Mandy can
a.increase the amount without limit
b.increase the amount within limits set by the Internal Revenue
Code
c.increase the amount, but must also contribute to all other
company employee accounts by the same proportion
d.increase the amount, but maximum benefit will be cut in half
because the plan is less than 10 years old
e.she cannot increase her contribution
37.The owner of Whitney Corporation, Inc., earned $250,000 in
2013. In the same year, three highly compensated employees
earned $100,000 each. The remaining 30 line workers earn
about $20,000 each, for a total payroll of $600,000 for this
group of workers. Whitney Corporation made the maximum
allowable contribution to each employee’s money purchase plan
in 2013. In 2013, what was the total amount that Whitney
Corporation contributed to their money purchase plan?
a.$51,000
b.$150,000
c.$225,000
d.$276,000
e.$318,000
38.Orville Winbacher died last year at age 58, leaving $500,000
accumulated in a Roth IRA. Which of the following is (are)
true?
a.monies in the Roth IRA must be distributed within a year of

10. the Orville’s death either to his estate or to a beneficiary
b.distribution from the account can be made over the life of a
designated beneficiary if begun within a year of Orville’s death
c.initial distribution of Orville’s Roth IRA funds to a
beneficiary are tax-free, but subsequent investment returns on
amounts distributed are taxable
d.a and b
e.b and c
39.George Flint was transferred to Chicago three years ago.
When he left Detroit, he sold his home and put some of the
money in a new Roth IRA. He and his wife, Wilma, have been
renting a home for the past 3 years. Recently, the homeowner
decided to sell. George is interested in buying the home. George
can make a penalty-free withdrawal from his Roth IRA to help
complete the purchase.
a.true
b.false
40. Brothers Tim and Jim Shanton have asked you, their
financial advisor, to settle a friendly quarrel between them. Tim
argues that a Roth IRA and a traditional IRA are actuarially
equivalent if $4,000 is available for investing on a before-tax
basis, contributions to the traditional IRA are deductible, tax
rates are expected to stay the same, and both have the same
interest rates. So, it makes no difference which vehicle one uses
to save for retirement. Jim insists that a Roth IRA is the better
investment. You tell them
a.Tim is wrong; the tax deduction available for a traditional
IRA allows more money to work for the contributor
b.Jim is wrong; at least for some low-income individuals, the
traditional IRA is a better investment because of its relatively
lower tax rates

11. c.Tim is right; the two investments are equivalent in every
respect when considered at the end of an investment horizon at
least 10-years long
d.Jim is right; the ability to make tax-free withdrawals from a
Roth IRA gives a greater return even when contributions and
interest rates are equivalent over time
e.both are right; the two investments are actuarially equivalent,
but absence of a minimum distribution date and more liberal
penalty-free withdrawal options may make the Roth IRA more
attractive
41. Which of the following statis is (are) NOT correct?
a.A durable power of attorney for health care is always a direct
substitue for a living will.
b.A living will only covers a narrow range of situations.
c.A living will must generally meet the requirements of a
formally drafted state statue.
d. Many well-intentioned living wills have failed because of
vagueness and/ or ambiguities.
42. A __________ is a legal request for how one’s estate should
be distributed upon death
a. Letter of last insturction
b. Will
c. Asset distribution
d. None of the above
43. The person transferring asssets to antoher person in a trust
is called the
a. Trustee
b. Grantor
c. Executor
d. None of the above
44. A ______________ is a legal documemnt created by

12. indiviudals to specify their preferences if they become mentally
or physically disabled
a. Power of attorney
b. Living trust
c. Codicil
d. Living will
45. A _____________ trust, the grantor is no longer the owner
of the assets in the trust disabled
a. Living
b. Revocable living
c. Irrovocable living
d. None of the above
46. Which of the following is not true regarding estate taxes?
a. They are dependent on the value of an estate
b. Any funds that are provided as a result of a life insurance
policy are counted as part of the estate for tax purposes
c. All the assets in an estate can be distributed tax-free to
children or others
d. All of the above are true
47. Which of the following situaitons would NOT constitute a
transfer that comes within the gift tax statues?
a. Robin creates a trust under the terms of which her daughter is
to get income for life and her granddaughter the remainder at
the daughter’s death.
b. Robbie purchases real propety and has the title conveyed to
himslef an to his brother as joint tenants.
c. Randal creates an irrovocable trust giving inocme for life to
his wife and providing that at her death the corpus is to be
distributed to his son.
d. Ray purchases a U.S. savings bond made payable to himself
and his wife, Raquel. Raquel cashes the bond to be used for her

13. own benefit.
e. Rose creates a joint bank account for herself and her daugher.
There have been no withdrawls from the account.
48. A living trust is one in which the grantor creates an inter
vivos trust that is funded with part of all of the grantor’s
property.
a. True
b. False
49. Which of the following transfers qualify for the unlimited
marital deduction?
a. Outright bequest to resident alien spouse
b. Property passing to citizen spouse in QTIP
c. Income beneficiary of CRT is a nonresident alien spouse
(trust is not a QDOT)
d. Outright bequest to resident spouse who, prior to the
decedent’s death, was a noncitizen bu who after the decedent’s
death and before the estate return was filed, became a U.S.
citizen.
e. b and d
50. The generation-skipping transfer tax (GSTT) is in addition
to the unified gift and estate tax and is designed to tax large
transfers tht skip a generation (i.e. from grandparent to
grandchile). The purpose of the tax is to collect potentially lost
tax dollars from the skipped generation.
a. True
b. False
4
Running head: JOB ANALYSIS1
JOB ANALYSIS2

14. Job evaluation is an objective and systematic process that
organizations uses to compare and determine worth or relative
values of each job within the organization. The job evaluation
method I would use is the point rating job evaluation. This
method would help me to break down the task based on
different identifiable factors such as knowledge, skills, training,
responsibility, hazards among other factors. I would allocate
points after that to each of these factors. I would then give
weights to these factors by their relevance to performing the
job. I would then sum up the points that I allocated to various
factors of the job. I would compare the total points of the claim
supervisor job with other jobs in Epic Health
Solution
s and place them in similar pay grades. The total points give the
index of worth or relative significance of jobs that are rated.
Job evaluation follows a certain procedure. First, I would
identify the job I will evaluate to make sure that all levels of
professional responsibility are covered by the chosen method. I
would then decide which factors I would use to assess the job.
These factors must be generalized to make the process simpler.
I would then define these factors clearly. The next step would
be determining the relative degree of the factors and assign
point values to different degrees based on some arithmetic
progression. The last step would be assigning a money value to
these points (Munson, 2010).

15. When determining what the organization will pay employees for
wages and salaries, it is crucial to comprehend the economic
conditions of their region, the legislative requirements put in
place and volume of potential employees. The first thing I
would consider when determining what to pay is the placement
of the role that can be determined by job evaluation or
classification organizationally. The second thing to consider is
relevant experience and skill the candidate or applicant possess
that may impact this placement in salary range upon hire. It is
essential to make sure a fair approach is taken and is guided by
compensation philosophy and utilized consistently (Bohlander,
2013).
I would recommend $80000 as the salary and benefits for the
claims supervisor on an annual basis. This sum factors all the
experience and qualifications plus the benefits accrued to that
position of the claims supervisor. I would also recommend
bonus and incentives packages for the position of the claims
supervisor. The programs for bonus and incentives motivates
the employee towards achieving desired business outcome hence
making them be self-driven and work hard resulting in the
success of the organization (Munson, 2010).
The claims supervisor job is eligible to join a union. The job
position has greater access to benefits. Most trade and labor
unions demand their members be provided with medical
facilities and other significant benefits. The job position is also

16. entitled to better wages. The labor unions would enable the
claims supervisor to negotiate for the addition of wages. Some
other employees in labor unions would also make the claims
supervisor interested and eligible to join a labor union. Labor
unions would enable the employees to negotiate for health
benefits, better working conditions and payments. Job security
is another factor. Enrolling in a labor union would make the
claims supervisor have job security because the employer has
not the mandate of terminating the employee based on some
discrimination issues such as religion, race, and age among
other issues (Rob, 2012).
References
Bohlander, G. (2013). Human Resource Management. New
York: Springer.
Munson, J. C. (2010). Job evaluation and analysis. New York:
Mc-Graw Hills.
Rob, P. (2012). Job evaluation. New York: Pearson.
Running head: PROCESSES1

17. PROCESSES 4
Source qualified applicants
After the job requirements and the selection criteria for the new
position have been determined, the employers are faced with the
decision of where to get the applicants necessary for filling the
position. Most of the vacancies in organizations are filled either
externally or internally depending on nature of the job position,
organizational policies, availability of qualified candidates and
the recruiting costs (Willard & White, 2013). Some of the
sources of qualified applicants are:
The first source is promoting the current employees within the
organization. This helps in keeping the employees morale high,
and job specifications are most important here. The other source
is the employees’ referrals. This involves employees of an
organization publicizing by the word of mouth. The third source
is the unsolicited applications. This is where candidates apply
for a job by sending their details (Willard & White, 2013).
Diversity importance within an organization
Diversity is crucial in an organization. A company committed to
a diverse workforce aims at harnessing a pool of employees
with the unique qualities and the taking the differences in them
as potential for growth and not for opportunities for conflict.
Organizations with diverse employees have some benefits. The
employees have different experiences and background which

18. bring together a variety of perspectives and evoking alternative
solutions or approaches during discussions. Diversity also
enhances unity and ensuring the growth of employees. When
selecting a candidate, I would consider qualities like problem-
solving ability, effective communication, critical thinking,
experiences, and team building ability, ability to work with
others and so on (Jackson, 2010).
Recruitment process
Recruitment process involves the following. One, recruitment
planning, it involves drafting a comprehensive job description
for the vacant position, by outlining minor and major
responsibilities, grade and the level of pay, also whether
permanent or temporary and mentioning of special conditions.
Secondly, strategy development, the issues considered here are
the type of recruitment methods to use, whether to prepare
required candidates themselves or to hire from outside,
geographical area to be considered for looking for the
candidates, what sequence activities to be followed when
recruiting the candidates and which source of recruitment to be
exercised. Thirdly, searching, involves attracting the job
seekers to an organization. They are two sources i.e. internal
and external sources which should be considered. The fourth,
screening, is starting point of the selection process and an
integral part of recruitment. The reason is, selections begins
immediately after application have been screened and

19. shortlisting. Applications re-screened against skills, interest,
abilities, knowledge and the experience stated in the job
specification. The unqualified are eliminated in the selection
process. Techniques used are testing, interviewing and
preliminary application. Finally, evaluation and control, the
cost involved in the recruitment process is evaluated, and
control is hence imperative. The cost incurred in the hiring
process are; administrative expense, recruiting unsuitable
candidates cost, preparation of analysis job costs, outsourcing
costs and salary costs (Payne & Wood, 2015).
Interview process
Interviewing the candidates for the position in the organization
is the final step in hiring process. To get the right person to
occupy the position in the company, interviewing s critical.
Determine the need to hire the new employee, conduct a
thorough job analysis, the job description and job specification
are supposed to write for the position based on job analysis.
Determine salary for the post based on the internal and the
external equity, decide on how and where to find the applicants,
collect and review the applications and the resumes and finally
select a most qualified candidate for further consideration. For
the most qualified candidates, interview based on the job
descriptions and the job specification and make sure to check
the references. Finally, hire the best person for the occupation
post (Research., 2009).

20. Final selection
During the final selection, the following factors and activities
are imperative. It is important to take time since hiring in haste
may lead to disastrous or significance mistakes. Should consider
cultural fitness, with the personal qualities and skills that will
balance them that are being to and the overall organization.
Identity the unique skills by asking which unique skills the
candidate should bring to the organization should possess the
ability to adapt to the various environment. Should also hold the
final interview round for the outside opinions, this will give
time for department team members or managers sit in. Look for
little things like if the candidate arrived in the interview in the
formal attire, dress code, lateness, remember their attention
details is the excellent indication of what they will make a
valuable employee. Finally, pick a passionate candidate about
the profession and particular positions within the organization
(Resources, 2011).
References
Jackson, S. E. (2010). Diversity in the workplace. New York:
Guilford Press,
Payne, T., & Wood, R. (2015). Competency-based recruitment

21. and selection. Chichester: Wiley.
Research., A. C. (2009). Practice now! : how to prepare for the
recruitment and selection tests. Camberwell: Australian Council
for Educational Research.
Resources, T. D. (2011). Selection process. Austin: Texas Dept.
of Human Resources, Volunteer Services.
Willard, A. F., & White, C. (2013). Managing the recruitment
process. New York: Law & Business, Inc.
Training Plan Template
Student Name:
_________________________________________
Date: ________________________________________________
Training Plan Template
Introduction
The training plan will outline the individual in-charge for

22. delivering the training, and where and when the trainee is
required to go in order to obtain structured component of
training. The training plan will also identify the work to be
performed for training to be complete. In Epic Health