Preview Questions Employee Benefits Lawyer | Role Specific Skill

Question 1: How does "health insurance premium tax credit" work under the ACA?

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It provides tax-free health insurance premiums for employers to pay directly to employees

It is a one-time tax credit available only to individuals with employer-sponsored coverage

It helps eligible individuals reduce the cost of their health insurance premiums based on income, family size, and other factors

It guarantees a fixed tax refund regardless of income level or plan cost

Question 2: What is the role of a "summary plan description" (SPD) under ERISA?

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It outlines the legal background of ERISA for plan participants

It is a document that governs the plan's tax treatment under the IRS

It provides participants with an overview of the plan's benefits, rights, and obligations in a clear and understandable format

It is the document required for employers to file with the Department of Labor

Question 3: What is the significance of "qualified domestic relations orders" (QDROs) in the distribution of retirement benefits?

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A QDRO prevents pension benefits from being subject to federal taxation

A QDRO allows a plan sponsor to distribute funds to a participant's family in case of death

A QDRO requires employers to provide an immediate lump sum payout upon divorce

A QDRO allows a non-participant spouse or dependent to receive a portion of the participant's retirement benefits

Question 4: How does ERISA define "health and welfare plans," and what are the legal requirements for compliance with ERISA for these types of plans?

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ERISA covers health and welfare plans, including medical, dental, and life insurance; employers must ensure these plans meet specific reporting and disclosure requirements

ERISA covers only health plans offered to employees in high-risk industries

Health and welfare plans under ERISA are voluntary and do not require reporting

ERISA applies only to pension and retirement plans, not health benefits

Question 5: Under the IRS rules for employee benefit plans, what is the "highly compensated employee" (HCE) threshold for participation in 401(k) plans?

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It refers to the employees who have the most seniority in the company

It applies only to employees with job titles related to benefits administration

It is generally defined as employees earning above a specified annual threshold or owning more than 5% of the company

It refers to employees who work more than 40 hours a week consistently

Question 6: Under ERISA, how does the "prohibited transaction" rule affect pension plan investments?

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It permits pension plans to engage in high-risk investments if approved by the Department of Labor

It allows pension plans to engage in transactions with any parties-in-interest as long as they are disclosed

It prohibits certain transactions between the plan and parties-in-interest to avoid conflicts of interest

It limits transactions to only non-investment activities such as plan administration