Certified Payroll Professional Practice Exam 2025 - Free CPP Practice Questions and Study Guide

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Under which IRC requirements do qualified plans fall?

Defined benefit plans

Defined contribution plans

Both defined benefit and defined contribution plans

Qualified plans must adhere to both defined benefit and defined contribution requirements under the Internal Revenue Code (IRC). Defined benefit plans specify the benefit to be received upon retirement, usually based on salary and years of service, while defined contribution plans determine the contributions made to employees' individual accounts. Both types of plans must meet specific criteria set forth by the IRC to maintain their tax-qualified status.

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Employer-required health insurance deductibles

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