CRPC Test CORRECT 100%

CRPC Test CORRECT 100%
No other qualified plan or 403(b) - ANSWER Simple IRA or Simple 401(k)

Younger employees benefit from years of contributions and compounding - ANSWER
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 - ANSWER
Money Purchase or Target Benefit Plan to provid age-weighted plan

Means to allow owner to meet his/her retirement - ANSWER Defined Benefit Plan

No more than 100 employees earing $5000 or more - ANSWER Simple IRA or Simple
401(k)

Desire plan that will motivate employees - ANSWER Profit sharing, SEP, or Tandem
Plan

Seeks maximum tax shelter - ANSWER Defined Benefit Plan

Business cash flow fluctuates - ANSWER Profit sharing, SEP, or Tandem Plan

Owner willing to make minimal contribution-2% or 3% of compensation - ANSWER
Simple IRA or Simple 401(k)

Means to allow owner to meet his/her retirement - ANSWER Defined Benefit Plan

Desire very low administrative cost - ANSWER Simple IRA or Simple 401(k)

Business Cash flow fluctuates - ANSWER Profit sharing, SEP, or Tandem Plan

No other qualified plan or 403(b) - ANSWER Simple IRA or Simple 401(k)

Willing and able to make annual financial commitment in excess of 25% of
compensation - ANSWER Defined Benefit Plan
Willing to accept investment risk - ANSWER Defined Benefit Plan

Easire to communicate plan to employees, and reduce administrative costs - ANSWER
Money Purchase or Target Benefit Plan to provid age-weighted plan

Shift investment risk to employees - ANSWER Profit sharing, SEP, or Tandem Plan

Desire to provide tax-deferred savings for employees - ANSWER Simple IRA or Simple
401(k)