FINC355 Final Exam Latest
Question
TRUE OR FALSE
1. Traditional 401(k) plans can be funded entirely through salary reductions by employees,
enabling employers to bear no additional cost for employee compensation.
True
False
2. A cash balance plan establishes a separate fund for each plan participant.
True
False
3. Defined benefit plans provide more benefit security than do age-weighted or cross-tested
plans.
True
False
4. All group insurance programs offered to employees must comply with ERISA reporting and
disclosure requirements.
True
False
Question
TRUE OR FALSE
1. Traditional 401(k) plans can be funded entirely through salary reductions by employees,
enabling employers to bear no additional cost for employee compensation.
True
False
2. A cash balance plan establishes a separate fund for each plan participant.
True
False
3. Defined benefit plans provide more benefit security than do age-weighted or cross-tested
plans.
True
False
4. All group insurance programs offered to employees must comply with ERISA reporting and
disclosure requirements.
True
False
