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Q1. What is the maximum age a qualified plan can require for eligibility?
• A) 18
• B) 19
• C) 21
• D) 25
Answer: C) 21
Q2. What is the statutory service requirement for plan eligibility?
• A) 500 hours of service in a 6-month period
• B) One year of service (1,000 hours in 12 months)
• C) Two years of service for all employees
• D) Immediate entry for all employees
Answer: B) One year of service (1,000 hours in 12 months)
Q3. When can a plan require two years of service for eligibility?
Answer: Only for employer contributions, and the employee must be
immediately 100% vested.
Q4. A calendar-year plan uses semiannual entry dates (January 1 and July 1). An
employee meets eligibility on April 15. When do they enter the plan?
Answer: July 1