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Papessa [141]
3 years ago
15

Assume a qualified plan provides eligibility for all employees age 21 and older with 2 years of service. There are numerous key

and highly compensated employees eligible for participation in this plan. What vesting schedule is required?
Business
1 answer:
lyudmila [28]3 years ago
5 0

Answer:

100% vesting upon plan entry

Explanation:

Vesting is a term in retirement that means ownership. Meaning that every employee owns (vest) a certain percentage of the account in their plan for each year.

100% vesting means the employee owns Al of his account, the employer cannot forfeit or take it back for any reason.

A qualified plan providing eligibility for all employees age 21 and older with 2 years of service and highly compensated employees are eligible. This will require 100% vesting upon plan entry

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RuthAnn is 28 years old and is retiring at the age of 65. When she retires, she estimates that she will need an annual income of
inessss [21]

Answer:

Yes

Explanation:

From her current age of 28 to her retirement age of 65, RuthAnn has (65 - 28 =) 37 more years to work.

If she saves 11% of her annual income of $36,278.13 into a 401(k), she will be setting aside (11% * 36,278.13 =) $3,990.59 into the 401(k) account annually.

At 7.1% compounding rate, in 37 years, RuthAnn would have set aside an amount estimated by the future value of an annuity formula.

FV = \frac{A(1+r)^{n} - 1}{r}

where FV is the future value, the amount that would have been set aside,

A = is the annual savings,

r = is the compounding rate, and

n = is the number of years.

Therefore, the total amount that would be saved up after 37 years =

FV = \frac{3,990.59(1+0.071)^{37} - 1}{0.071}

= (3,990.59 * 11.6535)/0.071

= $654,990.31.

By spending $32,523 annually from an account earning 7.1% compound interest rate for 30 years, the present value of the total amount needed by RuthAnn today that will be sufficient for her retirement spending can be estimated using the present value of an annuity formula.

PV = \frac{A(1 - (1+r)^{-n}}{r}

= PV = \frac{32,523(1 - (1.071)^{-30}}{0.071}

= (32523 * 0.8723)/0.071

= $399,574.83.

Since the amount saved up ($654,990.31) is more than the total amount required for RuthAnn's retirement ($399,574.83), RuthAnn has more than sufficient to meet her Retirement goal.

Specifically, the amount she has saved up can support a maximum annual spending which can be estimated from the present value of an annuity formula.

PV = \frac{A(1 - (1+r)^{-n}}{r}

where PV = the amount saved up, $654,990.31,

A = the annual spending which we are estimating,

r = the 7.1% compound interest rate,

n = the number of years to retirement.

654,990.31 = \frac{A(1 - (1.071)^{-30}}{0.071}

= 654,990.31 = (A * 0.8723)/0.071

= A = 654,990.31/0.8723 * 0.071

= A = 53,312.29

Thus, the amount saved up can support a maximum retirement spending of $53,312.29, which is higher than the $32,523 annual income needed by RuthAnn for her retirement.

6 0
2 years ago
A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transporte
defon

Answer:

N=\frac{5*2(1+0.4)}{6}\\N=2.333\ kanban\\

Rounded to next  whole number:

N=3 kanban card sets

Explanation:

Given:

Number of gauges per hour=D=5 gauges per hour

Gauge cluster housing Transported=C=6

Hours for housing replenishment = T=2 hours

Safety Stock Percentage=P=40%

Find:

Number of kanban card sets needed=N=?

Solution:

Formula According to above mentioned Alphabets

N=\frac{D*T(1+P)}{C}

N=\frac{5*2(1+0.4)}{6}\\N=2.333\ kanban\\

Rounded to next  whole number:

N=3 kanban card sets

7 0
3 years ago
Once the outputs are identified in a work flow analysis, the next step involves: identifying the materials needed to generate th
hichkok12 [17]

Answer:

taking an inventory of the special equipment, facilities, and systems needed for production.

Explanation:

7 0
2 years ago
The Tax Cuts and Jobs Act passed in December of 2017 dramatically increased the amount of money that is exempted or excluded whe
Serga [27]

Answer:

Option D. Portability Rule

Explanation:

The Portability rule says that if the estate tax exemption was not fully utilized at the time of the other spouse's death then the rule allows the surviving spouse to use the remainder unused estate tax exemption if left unused. So basically this rule gives the person maximum chance to obtain the benefit of utilization of estate tax exemptions.

8 0
3 years ago
Charles Clinton Spaulding, one of the pioneering theorists of administrative management, proposed eight _____ of management base
nikitadnepr [17]

Answer:

B, Necessities

Explanation:

Administrative management can be defined as the process of managing information between people in an organization.

One of the pioneering theorists of administrative management was Charles Clinton Spaulding. He was an African-American business leader as well as the  head of an insurance company, Mutual life insurance company, the largest black business in the USA at the time.

He postulated 8 necessities of administrative management and they are

1. Cooperation and teamwork

2. Authority and responsibility

3. Division of labor

4. Adequate manpower

5. Adequate capital

6. Feasibility studies/analysis

7. Advertising budget

8. Conflict resolution

Cheers.

4 0
2 years ago
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