Terminology: Employer-Sponsored Retirement Plans Many employers offer retirement plans as an employee benefit. An opportunity to participate in one should be seized, even if at its minimum participation requirements. In order to know what you're getting yourself into, you need to be familiar with the terms, provisions, and types of plans you may be offered. Match the terms relating to the basic terminology and concepts associated with employer-sponsored retirement plans on the left with the descriptions of the terms on the right. Read all descriptions first then make the best match between each description and term. In the Answer column, select the letter corresponding to the term's correct description. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description ERISA А. A law that establishes parameters for employee eligibility, waiting periods, and vesting in employer-sponsored plans. Vested В. An employer sponsoring this type of plan enjoys beneficial tax treatment. Noncontributory plan C. A plan in which employees may make contributions. Contributory plan D. When employees take full possession of their employer's contributions to their plan accounts. Defined-contribution plan Е. A completely employer-funded plan that many large companies are changing to due to much lower administrative expenses. Defined-benefit plan F. When employees of a firm share some of the company's earnings. Qualified plan G. A plan in which only employers make contributions. Profit-sharing plan Н. Also known as a pension, this type of plan provides lifetime monthly payments to retirees. Cash-balance plan I. Employers contribute company stock to employees as tax-deductible gifts and put the stock in trust for them. ESOP J. A plan that specifies the contribution employees and, in some cases, employers make.
Terminology: Employer-Sponsored Retirement Plans Many employers offer retirement plans as an employee benefit. An opportunity to participate in one should be seized, even if at its minimum participation requirements. In order to know what you're getting yourself into, you need to be familiar with the terms, provisions, and types of plans you may be offered. Match the terms relating to the basic terminology and concepts associated with employer-sponsored retirement plans on the left with the descriptions of the terms on the right. Read all descriptions first then make the best match between each description and term. In the Answer column, select the letter corresponding to the term's correct description. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description ERISA А. A law that establishes parameters for employee eligibility, waiting periods, and vesting in employer-sponsored plans. Vested В. An employer sponsoring this type of plan enjoys beneficial tax treatment. Noncontributory plan C. A plan in which employees may make contributions. Contributory plan D. When employees take full possession of their employer's contributions to their plan accounts. Defined-contribution plan Е. A completely employer-funded plan that many large companies are changing to due to much lower administrative expenses. Defined-benefit plan F. When employees of a firm share some of the company's earnings. Qualified plan G. A plan in which only employers make contributions. Profit-sharing plan Н. Also known as a pension, this type of plan provides lifetime monthly payments to retirees. Cash-balance plan I. Employers contribute company stock to employees as tax-deductible gifts and put the stock in trust for them. ESOP J. A plan that specifies the contribution employees and, in some cases, employers make.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 3C
Related questions
Question
100%
Transcribed Image Text:Terminology: Employer-Sponsored Retirement Plans
Many employers offer retirement plans as an employee benefit. An opportunity to participate in one should be seized, even if at its minimum
participation requirements. In order to know what you're getting yourself into, you need to be familiar with the terms, provisions, and types of plans
you may be offered.
Match the terms relating to the basic terminology and concepts associated with employer-sponsored retirement plans on the left with the descriptions
of the terms on the right. Read all descriptions first then make the best match between each description and term. In the Answer column, select the
letter corresponding to the term's correct description.
These are not necessarily complete definitions, but there is only one possible answer for each term.
Term
Answer
Description
ERISA
A.
A law that establishes parameters for employee eligibility, waiting periods, and vesting in
employer-sponsored plans.
Vested
В.
An employer sponsoring this type of plan enjoys beneficial tax treatment.
Noncontributory plan
С.
A plan in which employees may make contributions.
Contributory plan
D.
When employees take full possession of their employer's contributions to their plan
accounts.
Defined-contribution plan
Е.
A completely employer-funded plan that many large companies are changing to due to
much lower administrative expenses.
Defined-benefit plan
F.
When employees of a firm share some of the company's earnings.
Qualified plan
G.
A plan in which only employers make contributions.
Profit-sharing plan
Н.
Also known as a pension, this type of plan provides lifetime monthly payments to
retirees.
Cash-balance plan
I.
Employers contribute company stock to employees as tax-deductible gifts and put the
stock in trust for them.
ESOP
J.
A plan that specifies the contribution employees and, in some cases, employers make.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning