to the DB part of the plan.
6.If the DB(k) plan provides for a cash balance option, then Kleen should be receiving pay
credits of 6% per year.
7.All benefits provided under the DB(k) plan will be 100 percent vested for Kleen.
8.Because this plan is a proto-type DB(k) plan, Nex will not have to file a Form 5500.
Option (c) is correct. All benefits provided under the DB(k)
plan will be 100 percent vested for Kleen.
Option (a) is not correct. Kleen will not be limited on his
deferral to the 401(k) plan because of the required contribution.
He could defer up to the annual limit.
Option (b) is not correct. If the DB(k) plan provides for a cash balance option, then Kleen should not be receiving pay credits of 6% per year. Since Kleen is over age 50, he would be receiving pay credits of 8% per year.
Option (d) is not correct because DB(k) plans must file a single Form 5500. "Because this plan is a proto-type DB(k) plan, Nex will not have to file a Form 5500" is not a correct statement.
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