Question

Kathy has an account balance in her employer’s money purchase pension plan of $100,000. The plan...

Kathy has an account balance in her employer’s money purchase pension plan of $100,000. The plan uses a 2-6 year graded vesting schedule and Kathy has worked for the company for 5 years. What is the maximum plan loan that Kathy is legally permitted to take?

a. $20,000

b. $30,000

c. $40,000

d. $50,000

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Matching Questions 1. A traditional pension plan in which you receive a promised payout at retirement....
Matching Questions 1. A traditional pension plan in which you receive a promised payout at retirement. 2. A retirement plan in which the employer provides all of the funding and employees do NOT put their own money into the plan.    3. A type of retirement plan where both the employee and employer can/do put money into the plan. 4. A retirement plan provision that allows you to take your account balance with you if you leave your current employer...
Axe company sponsors a 401(k) profit sharing plan with no employer match, but the company did...
Axe company sponsors a 401(k) profit sharing plan with no employer match, but the company did make noncontributory employer contributions because the plan was top-heavy. Jack quit today after six years working for Axe and has come to you to determine how much of his retirement balance he can take with him. The plan uses the least generous graduated vesting schedule available. What is Jack’s vested account balance if he has been a participant for 57 months? EMPLOYER EMPLOYEE CONTRIBUTIONS  ...
Assume that ABC Coffee has the following totals on its balance sheet: Assets = $100,000 Liabilities...
Assume that ABC Coffee has the following totals on its balance sheet: Assets = $100,000 Liabilities = $40,000 ABC Coffee now borrows $50,000 from the bank. Discussion Questions: 1. How will the totals for assets and liabilities be affected by the loan? Explain. 2. Is the borrowing a good idea for the business? Why or why not? 3. How might the business use the $50,000? 4. What other information would be useful to have before deciding to take out the...
Ruth invested $100,000 in the Doing Great partnership. The partnership is now being liquidated and Ruth...
Ruth invested $100,000 in the Doing Great partnership. The partnership is now being liquidated and Ruth has a deficit balance of $30,000. Which of the following statement is true? Ruth responsibility and loss is constrained to the original $100,000 investment. Ruth is responsible to pay the partnership additional $30,000, even if she would need to sell her personal assets in order to afford this payment. Ruth should cover her deficit only if she can easily afford it. Ruth is legally...
Option #1: Time Value of Money Personal Finance Application Your friend Sue has asked you to...
Option #1: Time Value of Money Personal Finance Application Your friend Sue has asked you to help her out as she is developing her financial plan. Help her come up with a plan for her finances and how she can set herself up for financial success! She has an after tax income of $48,000 and budgets $30,000 for necessary expenses. This leaves $18,000 to spend on debt and savings annually. (Assume all annuity payments are in the form of ordinary...
Kiara is demanding clent her Account has been transferred to Dora to manage.Kiara feels that her...
Kiara is demanding clent her Account has been transferred to Dora to manage.Kiara feels that her portfolio is not "existing enough"and wants to take more risk.her current portfolio has expected return and volatility of 22.00% and 33.0% respectivly. dora's firm research department has portfolio that it consider optimal in a mean variance frame work.made up of two funds.the risk free rate of return is 5% the optimal risky portfolio has weight of 20% in growth fund and 80% in balance...
he president of the retailer Prime Products has just approached the company’s bank with a request...
he president of the retailer Prime Products has just approached the company’s bank with a request for a $30,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age 55, is the designated beneficiary on his Roth IRA. Ray's Roth IRA was established 3 years ago. Which of the following statements is(are) CORRECT? I Ray was not subject to required minimum distributions from his Roth IRA during his lifetime. II If Mary chooses to distribute the entire balance of the Roth IRA this year, the distribution may be subject to both regular income...
Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $90,000. In addition,...
Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $90,000. In addition, Trail has a net capital loss of $30,000. Trail's taxable income is $50,000 $20,000 $140,000 $60,000 Burt and Tiffany form Owl Corporation. Burt transfers property (basis of $20,000 and fair market value of $130,000), while Tiffany agrees to serve as Owl’s manager for one year. Each receives 100 shares of Owl Corporation stock. The value of Tiffany’s services for one year is $130,000. Which...
SPRING TRAINING INC.   Balance Sheet                             December 31, 2017 ASSETS  &nb
SPRING TRAINING INC.   Balance Sheet                             December 31, 2017 ASSETS                                                         LIABILITIES Cash                              $25,000             Accounts Payable                 $50,000 Accounts Rec.                   5,000             Mortgage Payable                 50,000 Inventory                        14,000               Supplies                            2,000             Total Liabilities                                  $100,000 Land                                18,000 Buildings      $220,000                             STOCKHOLDER EQUITY     Acc. Depr. <20,000> 200,000           Equipment     200,000                             Common Stock $5 Par      $30,000     Acc. Depr <14,000> 186,000             Excess of Par                     $300,000                                                                   Retained Earnings               20,000                                                                    Total Equity                                     $350,000 TOTAL ASSETS        $450,000              TOTAL LIAB. & EQUITY        ...