CRPC TEST WITH CORRECT QUESTIONS AND ANSWERS
Business cash flow fluctuates - -Profit sharing, SEP, or Tandem Plan
-Business Cash flow fluctuates - -Profit sharing, SEP, or Tandem Plan
-Business has stable cash flow and owner willing to make annual financial commitment, but either
unwilling or unable to commit more than 25% compensation - -Money Purchase or Target Benefit Plan
to provid age-weighted plan
-Desire plan that will motivate employees - -Profit sharing, SEP, or Tandem Plan
-Desire to provide tax-deferred savings for employees - -Simple IRA or Simple 401(k)
-Desire very low administrative cost - -Simple IRA or Simple 401(k)
-Easire to communicate plan to employees, and reduce administrative costs - -Money Purchase or
Target Benefit Plan to provid age-weighted plan
-Means to allow owner to meet his/her retirement - -Defined Benefit Plan
-Means to allow owner to meet his/her retirement - -Defined Benefit Plan
-No more than 100 employees earing $5000 or more - -Simple IRA or Simple 401(k)
-No other qualified plan or 403(b) - -Simple IRA or Simple 401(k)
-No other qualified plan or 403(b) - -Simple IRA or Simple 401(k)
-Owner usually 45 or older and oldest or one of the oldest employees, only one or two older - -Defined
Benefit Plan
-Owner willing to make minimal contribution-2% or 3% of compensation - -Simple IRA or Simple 401(k)
-Reward long-term employees, and favor older employees - -Defined Benefit Plan
-Seeks maximum tax shelter - -Defined Benefit Plan
-Shift investment risk to employees - -Money Purchase or Target Benefit Plan to provid age-weighted
plan
-Shift investment risk to employees - -Profit sharing, SEP, or Tandem Plan
-Willing and able to make annual financial commitment in excess of 25% of compensation - -Defined
Benefit Plan
-Willing to accept investment risk - -Defined Benefit Plan
Business cash flow fluctuates - -Profit sharing, SEP, or Tandem Plan
-Business Cash flow fluctuates - -Profit sharing, SEP, or Tandem Plan
-Business has stable cash flow and owner willing to make annual financial commitment, but either
unwilling or unable to commit more than 25% compensation - -Money Purchase or Target Benefit Plan
to provid age-weighted plan
-Desire plan that will motivate employees - -Profit sharing, SEP, or Tandem Plan
-Desire to provide tax-deferred savings for employees - -Simple IRA or Simple 401(k)
-Desire very low administrative cost - -Simple IRA or Simple 401(k)
-Easire to communicate plan to employees, and reduce administrative costs - -Money Purchase or
Target Benefit Plan to provid age-weighted plan
-Means to allow owner to meet his/her retirement - -Defined Benefit Plan
-Means to allow owner to meet his/her retirement - -Defined Benefit Plan
-No more than 100 employees earing $5000 or more - -Simple IRA or Simple 401(k)
-No other qualified plan or 403(b) - -Simple IRA or Simple 401(k)
-No other qualified plan or 403(b) - -Simple IRA or Simple 401(k)
-Owner usually 45 or older and oldest or one of the oldest employees, only one or two older - -Defined
Benefit Plan
-Owner willing to make minimal contribution-2% or 3% of compensation - -Simple IRA or Simple 401(k)
-Reward long-term employees, and favor older employees - -Defined Benefit Plan
-Seeks maximum tax shelter - -Defined Benefit Plan
-Shift investment risk to employees - -Money Purchase or Target Benefit Plan to provid age-weighted
plan
-Shift investment risk to employees - -Profit sharing, SEP, or Tandem Plan
-Willing and able to make annual financial commitment in excess of 25% of compensation - -Defined
Benefit Plan
-Willing to accept investment risk - -Defined Benefit Plan
