Preview Questions Employee Benefits Lawyer | Role Specific Skill

Question 1: How does the ACA's "preventive care coverage" requirement affect employer-sponsored health plans?

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It mandates that health plans cover a fixed percentage of preventive care services

It mandates that all plans provide coverage for emergency services

It mandates that employer-sponsored plans cover certain preventive services without cost-sharing

It requires employers to offer screenings for chronic illnesses to all employees

Question 2: What is the difference between a "profit-sharing plan" and a "defined benefit plan"?

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A profit-sharing plan is always funded by employees, while a defined benefit plan is entirely funded by the employer

A profit-sharing plan is not subject to ERISA, while a defined benefit plan is

A profit-sharing plan is a type of defined contribution plan where contributions are based on company profits, while a defined benefit plan provides a fixed retirement benefit

A profit-sharing plan guarantees a specific benefit at retirement, while a defined benefit plan is subject to market performance

Question 3: Under IRC Section 403(b), how are contributions to tax-sheltered annuity plans treated for taxation?

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Contributions are made on a pre-tax basis, and earnings grow tax-deferred until withdrawal

Contributions and earnings are taxable as ordinary income at withdrawal

Contributions are made with after-tax dollars, and distributions are tax-free

Contributions are taxable as income when made, but withdrawals are tax-exempt

Question 4: What is the "401(k) deferral limit" for employee contributions, and how should an Employee Benefits Lawyer ensure compliance with these contribution limits?

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The limit applies only to employer contributions

The 401(k) deferral limit for employee contributions is $19,500 for 2021, with a catch-up provision for employees over 50; the lawyer should ensure that contributions do not exceed this amount

The limit is determined by the employee's income

The 401(k) deferral limit is $50,000 for employee contributions

Question 5: What is the "required minimum distribution" (RMD) rule, and how does it apply to retirement plans?

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The RMD rule allows individuals to delay withdrawals from retirement plans until age 80

The RMD rule applies only to pension plans, not to 401(k) accounts

The RMD rule requires employers to distribute a lump sum to retirees upon leaving employment

The RMD rule mandates that individuals must begin taking distributions from their retirement accounts at age 72

Question 6: How should an Employee Benefits Lawyer manage "early retirement distributions," particularly when employees wish to access pension funds before reaching retirement age?

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Early distributions are prohibited under ERISA

Early retirement distributions may incur penalties, but the lawyer should ensure that exceptions such as hardship withdrawals or qualified domestic relations orders (QDROs) are properly applied

Early distributions are only allowed for defined contribution plans

Early distributions are automatically allowed with no penalties