For which reason does the IRS use the term "key employees"?

a. non-discrimination rules in retirement benefits

b. non-discrimination rules in health insurance

c. benefits top-heavy provisions in employer-sponsored qualified retirement plans

d. top-heavy provisions in employer-sponsored health insurance plans

Question

Deven Case

Social Studies

18 July, 08:29

For which reason does the IRS use the term "key employees"?

a. non-discrimination rules in retirement benefits

b. non-discrimination rules in health insurance

c. benefits top-heavy provisions in employer-sponsored qualified retirement plans

d. top-heavy provisions in employer-sponsored health insurance plans

+5

Answers (1)

Know the Answer?

Heather Simpson · Answer 1

Option C, top-heavy provisions in employer-sponsored qualified retirement plans, is the right answer.

Explanation:

The Internal Revenue Service of the United States uses a terminology, Key employee, to signify a classification of employees while determining the conditional retirement plans sponsored by the organisation, which involves 401 (a) established benefit plans and 401 (k) s recognized as "top-heavy". In simple terms, weighted towards the highly compensated employees of a company.