Practice Quiz

Health and Life Insurance

Category - Tax Issues

Start a Study Session Sign up for Question of the Day
In order for life insurance in a qualified retirement plan to be considered incidental, it will have to meet which of the following tests:
  1. The cost of the life insurance must be less than 25 percent of the cost to provide all plan benefits
  2. The life insurance death benefit cannot exceed 100 times the monthly retirement income that is provided by the qualified retirement plan
  3. Either A or B
  4. Neither A nor B
Explanation
Answer: C - In order for life insurance in a qualified retirement plan to be considered incidental, it will have to meet at least one of two tests, meaning that either the cost of the life insurance must be less than 25 percent of the cost to provide all plan benefits, or the life insurance death benefit cannot exceed 100 times the monthly retirement income that is provided by the qualified retirement plan.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz