Question

The answer is stock bonus plan. A stock bonus plan would accomplish ABC Company's objectives. The others are not the best plan for these reasons:

A) Money purchase pension plans only allow for 10% company stock.
B) ESOPs cannot be integrated with Social Security.
C) New SARSEPs can no longer be established.

Answer 1

A stock bonus plan would be the best plan for ABC Company's objectives as it aligns with their desire to have company stock in the plan. Money purchase pension plans, ESOPs, and SARSEPs have limitations that make them less suitable for ABC Company.

Step-by-step explanation:

A stock bonus plan would be the best plan for ABC Company's objectives. The other options mentioned, such as money purchase pension plans, ESOPs, and SARSEPs, have limitations that make them less suitable for ABC Company's goals.

1. Money purchase pension plans only allow for a maximum of 10% company stock, which may not align with ABC Company's desire to have a higher percentage of company stock in the plan.
2. ESOPs cannot be integrated with Social Security, which might be important for ABC Company if they want a retirement plan that works together with Social Security benefits.
3. New SARSEPs can no longer be established, so ABC Company would not be able to implement this type of plan.

Overall, the stock bonus plan would be the most suitable option for ABC Company as it aligns with their objectives.