Question

A Master Plan utilized by a financial institution for a qualified retirement consists of all of the following EXCEPT:

a. a basic plan document.
b. an adoption agreement.
c. a trust agreement under which all participating plan investments are held.
d. a record keeping document.

Answer 1

A Master Plan utilized by a financial institution for a qualified retirement consists of various components and strategies to help individuals save and invest for their future. However, a record keeping document is not typically considered a part of this Master Plan.

Step-by-step explanation:

A Master Plan utilized by a financial institution for a qualified retirement consists of various components that help individuals save and invest for their future. These components include:

1. Investment options such as 401(k)s and 403(b)s that allow the employee and employer to contribute regularly and invest in different assets.
2. Tax deferral benefits, which allow individuals to defer paying taxes on their retirement contributions until they withdraw the funds during retirement.
3. Portability, which allows individuals to transfer their retirement account to a new employer if they change jobs.
4. Real rates of return, which refers to the actual growth or profit generated by the investments made within the retirement account.

A record keeping document is not typically considered a part of a Master Plan for a qualified retirement. Although maintaining records is important for financial tracking and tax purposes, it is not a specific component of a retirement Master Plan.