SIE Exam Question 837: Answer and Explanation

Question: 837

A retirement plan is __________ if more than 60% of total plan benefits are in favor of key employees.

• A. ERISA certified
• B. discriminatory
• C. illegal
• D. top heavy

Correct Answer: D

Explanation:

A retirement plan is top heavy if more than 60% of total plan benefits are in favor of key employees. Certain rules and conditions apply to top-heavy plans.