Qualified plan assets are placed into and held by a trust. What can the trust distribute to the employer? Select one: a. Nothing b. Special distributions and dividends c. Excess contributions d. Annual forfeitures
Qualified plan assets are placed into and held by a trust. What can the trust distribute to the employer?
Nothing
Special distributions and dividends
Excess contributions
Annual forfeitures
The definition of a qualified trust for purposes of this section is a trust established or organized in the United States and comprising a stock bonus, pension, or profit-sharing plan of an employer for the sole benefit of his workers or their beneficiaries. If donations are made to the trust by such employer, its employees, or both, by another employer who is eligible to deduct his contributions under section 404(a)(3)(B) (relating to deduction for contributions to profit-sharing and stock bonus plans), by a charitable remainder trust in accordance with a qualified gratuitous transfer (as defined in section 664(g)(1)), or by a charitable remainder trust, then the corpus and income of the trust will be distributed to such employees or their beneficiaries.
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