KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define deferred profit sharing plan (DPSP).1
- Explain the attributes of a deferred profit sharing plan, such as:
- Eligibility criteria
- Minimum and maximum contributions
- Deductibility of contributions
- Party who controls investment choices
- Retirement dates (early, normal, deferred)
- Vesting provisions
- Transferability of benefits
- Termination options
- Explain the advantages and disadvantages of a deferred profit sharing plan.
- Explain how the tax impact of receiving company shares from a deferred profit sharing plan may be reduced.
- Explain the tax treatment of income earned within a deferred profit sharing plan.
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To determine an approximate value for
To find the value using mathematics
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To give the meaning of / to construe or understand / to translate orally