Question

What are the general qualification requirements for employer-sponsored retirement plans?

1) Employee eligibility
2) Vesting
3) Contribution limits
4) Plan administration

Answer 1

The general qualification requirements for employer-sponsored retirement plans include employee eligibility, vesting, contribution limits, and plan administration. option 4 is answer

Step-by-step explanation:

The general qualification requirements for employer-sponsored retirement plans include:

1. Employee eligibility: Employers may set specific requirements for employees to be eligible for the retirement plan, such as minimum hours worked or length of service.
2. Vesting: Vesting refers to how long employees must work for an employer before they fully own the contributions made to their retirement plan. This can vary depending on the plan, but common vesting schedules are 3 or 5 years.
3. Contribution limits: Retirement plans have annual limits on how much employees and employers can contribute. These limits are set by the IRS and may change each year. For example, the 2021 contribution limit for a 401(k) is $19,500.
4. Plan administration: Employers are responsible for the proper administration of the retirement plan, including selecting investment options, providing information to employees, and ensuring compliance with applicable laws and regulations. option 4 is answer