What is the purpose of tax incentives for qualified retirement plans? - ANSWER To en-
courage employers to adopt plans and employees to save for retirement.
What tax benefits do qualified retirement plans receive? - ANSWER Tax-deductible contri-
butions, tax credits for small businesses, deferred taxation, and tax preferences on earnings.
What law governs retirement plans? - ANSWER Employee Retirement Income Security
Act of 1974 (ERISA).
Which agencies have jurisdiction over tax issues of qualified plans? - ANSWER Depart-
ment of the Treasury and Internal Revenue Service (IRS).
What does the Department of Labor (DOL) oversee under ERISA? - ANSWER Participant
rights protection and fiduciary behavior.
What does Title I of ERISA contain? - ANSWER Labor law provisions including eligibility,
vesting, funding, reporting, disclosure, and fiduciary standards.
What does Title II of ERISA address? - ANSWER Tax-related provisions amending IRC sec-
tions for qualified plans.
What is the role of the Pension Benefit Guaranty Corporation (PBGC) under Title IV? - AN-
SWER Provides insurance for defined benefit plans and pays guaranteed benefits if plans
terminate without sufficient assets.
What does Title III of ERISA cover? - ANSWER Administrative provisions dividing enforce-
ment between IRS and DOL.
1
, What additional responsibility was given to the PBGC for defined contribution plans? - AN-
SWER Maintaining benefits for lost participants in terminated plans.
What must a qualified plan satisfy under IRC §401(a)? - ANSWER Requirements in both
form (plan document) and operation.
What does compliance in form mean for a qualified plan? - ANSWER The plan document
includes relevant IRC §401(a) provisions.
What is required by Treas. Reg. §1.401-1(a)(2) for a plan? - ANSWER A definite written
program.
What happens if a plan fails to satisfy the form requirement? - ANSWER It risks disqualifi-
cation, even if operated properly.
How can plan document violations be corrected? - ANSWER Within the remedial amend-
ment period or via the IRS's EPCRS.
What types of plans are exempt from some IRC §401(a) requirements? - ANSWER Gov-
ernmental plans and non-electing church plans.
Under IRC §401(a)(1) - ANSWER who must a qualified plan benefit?,Employees of the
employer, including self-employed individuals.
What does IRC §401(a)(1) require for plan assets? - ANSWER They must be held in a trust.
What is the exclusive benefit rule under IRC §401(a)(2)? - ANSWER The plan must be
maintained for the benefit of participants and beneficiaries, not the employer.
2
courage employers to adopt plans and employees to save for retirement.
What tax benefits do qualified retirement plans receive? - ANSWER Tax-deductible contri-
butions, tax credits for small businesses, deferred taxation, and tax preferences on earnings.
What law governs retirement plans? - ANSWER Employee Retirement Income Security
Act of 1974 (ERISA).
Which agencies have jurisdiction over tax issues of qualified plans? - ANSWER Depart-
ment of the Treasury and Internal Revenue Service (IRS).
What does the Department of Labor (DOL) oversee under ERISA? - ANSWER Participant
rights protection and fiduciary behavior.
What does Title I of ERISA contain? - ANSWER Labor law provisions including eligibility,
vesting, funding, reporting, disclosure, and fiduciary standards.
What does Title II of ERISA address? - ANSWER Tax-related provisions amending IRC sec-
tions for qualified plans.
What is the role of the Pension Benefit Guaranty Corporation (PBGC) under Title IV? - AN-
SWER Provides insurance for defined benefit plans and pays guaranteed benefits if plans
terminate without sufficient assets.
What does Title III of ERISA cover? - ANSWER Administrative provisions dividing enforce-
ment between IRS and DOL.
1
, What additional responsibility was given to the PBGC for defined contribution plans? - AN-
SWER Maintaining benefits for lost participants in terminated plans.
What must a qualified plan satisfy under IRC §401(a)? - ANSWER Requirements in both
form (plan document) and operation.
What does compliance in form mean for a qualified plan? - ANSWER The plan document
includes relevant IRC §401(a) provisions.
What is required by Treas. Reg. §1.401-1(a)(2) for a plan? - ANSWER A definite written
program.
What happens if a plan fails to satisfy the form requirement? - ANSWER It risks disqualifi-
cation, even if operated properly.
How can plan document violations be corrected? - ANSWER Within the remedial amend-
ment period or via the IRS's EPCRS.
What types of plans are exempt from some IRC §401(a) requirements? - ANSWER Gov-
ernmental plans and non-electing church plans.
Under IRC §401(a)(1) - ANSWER who must a qualified plan benefit?,Employees of the
employer, including self-employed individuals.
What does IRC §401(a)(1) require for plan assets? - ANSWER They must be held in a trust.
What is the exclusive benefit rule under IRC §401(a)(2)? - ANSWER The plan must be
maintained for the benefit of participants and beneficiaries, not the employer.
2
