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Personal Financial Planning
22. CHAPTER 16: BASIC RETIREMENT PLANS/Target/Age-Weighted Plans
22. CHAPTER 16: BASIC RETIREMENT PLANS Illustration
Syllabus Slides

Target/Age-Weighted Plans

01.Core Concepts

• Allows higher percentage of compensation contribution levels for older defined contribution plan participants • Traditional target benefit pension plan • Age-weighted money purchase pension plan • Age-based profit-sharing plan • Uses an age-weighted factor in the allocation formula • New comparability plan • Uses cross-testing in nondiscrimination testing