FINRA Series 6

Category - Series 6

A plan under which employees of state and local governments can contribute part of their salaries such that those earnings will grow tax-deferred until retirement is called a:
  1. profit-sharing plan.
  2. money purchase plan.
  3. Section 457 plan.
  4. Section 501 plan.
Explanation
Answer: C - A plan under which employees of state and local governments can contribute part
of their salaries such that those earnings will grow tax-deferred until retirement is called a Section 457 plan. Profit-sharing and money purchase plans are retirement plans that may be available to employees of for-profit companies. Section 501 of the IRS code covers non-profit corporations.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz