Chapter 3 - Controlled Groups and Affiliated Service Groups

Frage 1 von 19

1

A parent-subsidiary controlled group exists if the companies are connected through at least 50 percent stock ownership.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 2 von 19

1

A brother-sister controlled group exists if either the common ownership or the effective control test is satisfied.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 3 von 19

1

Attribution between spouses does not apply if the couple is childless.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 4 von 19

1

Attribution from a parent to a minor child applies only if the parent owns more than 50 percent of the business.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 5 von 19

1

Company A and Company B are a controlled group. The workforces of both companies are considered when testing each company’s plan for coverage requirements.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 6 von 19

1

A financial institution is considered a service organization because it provides a service of lending money.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 7 von 19

1

In order for an A-Org group to exist, the A-Organization must have at least a 10 percent ownership interest in the FSO.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 8 von 19

1

If an FSO is a corporation, it always must be a professional service corporation for affiliated service group rules.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 9 von 19

1

If two or more entities are deemed to be an affiliated service group, they do not need to be tested together for top-heavy purposes as long as each is not top-heavy on its own.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 10 von 19

1

If two or more entities are deemed to be an affiliated service group and each entity sponsors its own plan, each plan must pass coverage.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 11 von 19

1

For purposes of determining any type of affiliated service group, ownership is attributed from a grandchild to a grandparent, but not from a grandparent to a grandchild.

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 12 von 19

1

Based on the following information, determine brother-sister controlled group status:
• The individuals listed are not related.

Wähle eine der folgenden:

A. None
B. W and X only
C. W and Y only
D. X and Y only
E. W and X, X and Y only

Erklärung

Frage 13 von 19

1

All of the following conditions are necessary to avoid spousal attribution for controlled group purposes, EXCEPT:

Wähle eine der folgenden:

A. The spouse must not have any direct ownership in the business.
B. The spouse must not be a director or employee of the business.
C. The spouse must not participate in the management of the business.
D. The spouse must not inherit the business upon death of the business owner.
E. No more than 50 percent of the business’ gross income may be derived from passive investments.

Erklärung

Frage 14 von 19

1

All of the following statements regarding attribution for controlled group purposes are TRUE, EXCEPT:

Wähle eine der folgenden:

A. Ownership is attributed from husband to wife unless the business is wholly owned by the husband and certain requirements are met.
B. Ownership is attributed from a minor child to a parent.
C. Ownership is attributed from an adult child to a parent if the parent owns more than 50 percent of the corporation.
D. Ownership is attributed from a grandparent to a grandchild if the grandchild owns more than 50 percent of the corporation.
E. Ownership is attributed from a father-in-law to a son-in-law.

Erklärung

Frage 15 von 19

1

All of the following IRC sections consider controlled group members as a single employer, EXCEPT:

Wähle eine der folgenden:

A. Eligibility and coverage (IRC §410)
B. Deduction (IRC §404)
C. Top-heavy (IRC §416)
D. Vesting (IRC §411)
E. Annual additions (IRC §415)

Erklärung

Frage 16 von 19

1

All of the following statements regarding affiliated service groups are TRUE, EXCEPT:

Wähle eine der folgenden:

A. An FSO can be part of both an A-Org group and a B-Org group.
B. An FSO of an A-Org group must be a professional service organization.
C. An A-Organization must be a service organization.
D. A B-Organization need not be a service organization.
E. An A-Organization must have some ownership in the FSO.

Erklärung

Frage 17 von 19

1

All of the following are effects of being an affiliated service group, EXCEPT:

Wähle eine der folgenden:

A. An employee’s service with all group members is credited when determining plan eligibility.
B. Plans must satisfy coverage requirements considering all employees in the affiliated service group.
C. HCE status is determined by looking at the ownership in each entity separately.
D. Annual additions for all plans in the group are aggregated to determine if the IRC §415 limits have been exceeded.
E. An employee’s service with all group members is credited when determining
vesting percentages.

Erklärung

Frage 18 von 19

1

All of the following statements regarding attribution in determining affiliated service groups are TRUE, EXCEPT:

Wähle eine der folgenden:

A. Ownership interest is attributed between spouses.
B. Ownership interest is attributed from parent to adult child only if the parent owns more than 50 percent of the company.
C. Ownership interest is not attributed between siblings.
D. Ownership interest is attributed from grandchild to grandparent.
E. Ownership interest is not attributed from grandparent to grandchild.

Erklärung

Frage 19 von 19

1

All of the following activities would be considered management functions, EXCEPT:

Wähle eine der folgenden:

A. Supervisory roles
B. Hiring employees
C. Investing 401(k) plan assets
D. Setting employee compensation
E. Business planning

	Erstellt von Justin Guy (just vor fast 9 Jahre

DC3 DC3 Quiz am Chapter 3 - Controlled Groups and Affiliated Service Groups, erstellt von Justin Guy (just am 21/10/2015.

Chapter 3 - Controlled Groups and Affiliated Service Groups

Frage 1 von 19

A parent-subsidiary controlled group exists if the companies are connected through at least 50 percent stock ownership.

Wähle eins der folgenden:

Erklärung

Frage 2 von 19

A brother-sister controlled group exists if either the common ownership or the effective control test is satisfied.

Wähle eins der folgenden:

Erklärung

Frage 3 von 19

Attribution between spouses does not apply if the couple is childless.

Wähle eins der folgenden:

Erklärung

Frage 4 von 19

Attribution from a parent to a minor child applies only if the parent owns more than 50 percent of the business.

Wähle eins der folgenden:

Erklärung

Frage 5 von 19

Company A and Company B are a controlled group. The workforces of both companies are considered when testing each company’s plan for coverage requirements.

Wähle eins der folgenden:

Erklärung

Frage 6 von 19

A financial institution is considered a service organization because it provides a service of lending money.

Wähle eins der folgenden:

Erklärung

Frage 7 von 19

In order for an A-Org group to exist, the A-Organization must have at least a 10 percent ownership interest in the FSO.

Wähle eins der folgenden:

Erklärung

Frage 8 von 19

If an FSO is a corporation, it always must be a professional service corporation for affiliated service group rules.

Wähle eins der folgenden:

Erklärung

Frage 9 von 19

If two or more entities are deemed to be an affiliated service group, they do not need to be tested together for top-heavy purposes as long as each is not top-heavy on its own.

Wähle eins der folgenden:

Erklärung

Frage 10 von 19

If two or more entities are deemed to be an affiliated service group and each entity sponsors its own plan, each plan must pass coverage.

Wähle eins der folgenden:

Erklärung

Frage 11 von 19

For purposes of determining any type of affiliated service group, ownership is attributed from a grandchild to a grandparent, but not from a grandparent to a grandchild.

Wähle eins der folgenden:

Erklärung

Frage 12 von 19

Based on the following information, determine brother-sister controlled group status: • The individuals listed are not related.

Wähle eine der folgenden:

Erklärung

Frage 13 von 19

All of the following conditions are necessary to avoid spousal attribution for controlled group purposes, EXCEPT:

Wähle eine der folgenden:

Erklärung

Frage 14 von 19

All of the following statements regarding attribution for controlled group purposes are TRUE, EXCEPT:

Wähle eine der folgenden:

Erklärung

Frage 15 von 19

All of the following IRC sections consider controlled group members as a single employer, EXCEPT:

Wähle eine der folgenden:

Erklärung

Frage 16 von 19

All of the following statements regarding affiliated service groups are TRUE, EXCEPT:

Wähle eine der folgenden:

Erklärung

Frage 17 von 19

All of the following are effects of being an affiliated service group, EXCEPT:

Wähle eine der folgenden:

Erklärung

Frage 18 von 19

All of the following statements regarding attribution in determining affiliated service groups are TRUE, EXCEPT:

Wähle eine der folgenden:

Erklärung

Frage 19 von 19

All of the following activities would be considered management functions, EXCEPT:

Wähle eine der folgenden:

Erklärung

Based on the following information, determine brother-sister controlled group status:
• The individuals listed are not related.