Jacques, who is age 45, has just resigned from his current job. He worked for Ac

Question

Jacques, who is age 45, has just resigned from his current job. He worked for Ace, which sponsors a cash balance
plan and a standard 401(k) plan. Each of the plans uses the longest permitted vesting schedule and both plans are
top heavy. He has a balance of $40,000 in the cash balance plan, has deferred $20,000 into the 401(k) plan and
has employer matching contributions of $10,000. If he has been employed for three years, but only participating
in the plans for the last two years, how much does he keep if he leaves today?

a. $20,000.
b. $30,000.
c. $60,000.
d. $64,000.

Explanation / Answer

Jacques can take 100% of her contribution from the plan because employess contribution are 100% vested.

Employer contributions are the contributions that follow the vesting schedule.

SO,total amount he can take is $60000.

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