Preview Questions Employee Benefits Lawyer | Role Specific Skill

Question 1: How does the "constructive receipt" doctrine apply to the taxation of benefits under the IRC?

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It means that an employee is considered to have received income if it is made available to them, even if they don't take it

It allows employees to delay paying taxes on income until they choose to receive it

It provides that certain benefits are never taxable to the employee

It eliminates the need to report employer-provided benefits

Question 2: 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 3: Under ERISA, how are health benefits typically treated in terms of reporting and disclosure requirements?

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Health benefits must be reported quarterly to the IRS

Health benefits require a separate report to the Department of Health and Human Services

Health benefits must be included in the plan's annual report to the Department of Labor

Health benefits are exempt from ERISA reporting and disclosure requirements

Question 4: What is the "income exclusion" for dependent care benefits under Section 129 of the IRC?

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Employees can exclude up to $5,000 per year in dependent care benefits from taxable income

Dependent care benefits are subject to full taxation without exclusions

Employees can exclude up to $10,000 per year for child care benefits but not elder care

Dependent care benefits are treated as taxable income with no exclusions

Question 5: What is the "qualified domestic relations order" (QDRO), and how does it relate to pension plan distributions during divorce proceedings?

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A QDRO applies only to 401(k) plans

A QDRO is a court order that divides pension plan benefits between spouses in a divorce; the lawyer must ensure that the QDRO complies with plan rules

QDROs are irrelevant for defined contribution plans

A QDRO is automatically applied in divorce settlements

Question 6: What does the "anti-cutback" rule under ERISA prevent?

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It prevents the IRS from increasing taxes on retirement contributions

It prevents employers from reducing the benefits accrued by employees in pension plans

It prevents employers from imposing penalties on early withdrawals

It prevents employees from accessing their retirement benefits before retirement