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Which of the following would NOT be eligible for a tax-sheltered 403(b) annuity?
A) Professor at a land grant college
B) Student at a private college
C) Custodian at a municipal public school
D) Employee of a county high school
Answer: B
All of the individuals listed meet the requirement of being a school system employee except for the student, who is a client, rather than an employee, of the school system. Employees of tax-exempt and religious organizations are also eligible for a 403(b) annuity.
Which of the following plans requires an actuary's services?
A) Defined benefit
B) Profit-sharing
C) 401K
D) Defined contribution
Answer: A
In a defined benefit plan, the payout is established and employers must contribute annually to assure payment of the benefit amount. An actuary must calculate the annual contribution amount necessary to meet the benefit requirement (on Keogh plans).
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