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S_A_V [24]
3 years ago
14

Vance has a vested account balance in his employer-sponsored qualified profit-sharing plan of $40,000. He has two years of servi

ce with his employer and the plan follows the least generous graduated vesting schedule permitted for a profit-sharing plan under PPA 2006. If Vance has an outstanding loan balance within the prior 12 months of $15,000, what is the maximum loan Vance could take from this qualified plan, assuming the plan permitted loans
Business
1 answer:
Maurinko [17]3 years ago
7 0

Answer: $5,000

Explanation:

Per the requirements of qualified plans that permit loans, the maximum amount that an individual can withdraw is whichever is lesser between $50,000 and 50% of their Vested Account Balance.

Vance in this scenario has a vested account balance of $40,000.

50% of that would be $20,000.

That means that he can be loaned $20,000. However, he already has an outstanding loan balance that must be accounted for of 15,000.

Subtracting those figures we have,

= 20,000 - 15,000

= $5,000

The maximum loan that Vance can take from the qualified plan is $5,000

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2 years ago
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Sonbull [250]

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always,

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5 0
2 years ago
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Option D          

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