Preview Questions Employee Benefits Lawyer | Role Specific Skill

Question 1: What is the "taxation of employer contributions to health savings accounts" (HSAs), and how can an Employee Benefits Lawyer advise on compliance with IRS rules?

Which action should you take?

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Employer contributions are taxed as ordinary income

Employer contributions are not subject to IRS reporting requirements

Employer contributions to HSAs are tax-exempt for employees, and the lawyer should ensure that contributions do not exceed the annual limit set by the IRS

Employer contributions to HSAs are always taxable

Question 2: How does "healthcare portability" apply under the ACA?

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It allows employees to keep their healthcare benefits for up to 5 years without any interruption

It limits healthcare coverage to employers within the same industry

It applies only to health savings accounts (HSAs) and not to employer-sponsored plans

It allows employees to maintain coverage when they change employers without being penalized for pre-existing conditions

Question 3: What is the "retirement plan spousal consent requirement" under ERISA, and how should an Employee Benefits Lawyer ensure compliance with this rule in retirement distributions?

Which action should you take?

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Spousal consent applies only to lump sum distributions

Spousal consent is required only if the employee is over 60

Spousal consent is only required in divorce situations

ERISA requires that spouses consent to certain distributions, especially in defined benefit plans; the lawyer should ensure spousal consent is properly documented

Question 4: What does the term "grandfathered health plan" mean under the ACA, and how does it affect healthcare benefits?

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It applies only to health plans offered to government employees

It refers to plans that only provide minimum essential coverage

It refers to plans that provide higher-than-required coverage and are exempt from new rules

It refers to health plans that existed before the ACA and are exempt from some of its requirements

Question 5: What is the "exclusive benefit rule" under ERISA, and how does it impact pension plans?

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It mandates that pension plan benefits be distributed to employees only after they retire

It provides employers with the discretion to decide how assets should be distributed

It allows employers to access plan assets for operational expenses

It requires that the assets of the plan be used exclusively for the benefit of plan participants and beneficiaries

Question 6: How does ERISA define "fiduciary duty," and how is it enforced in the administration of employee benefit plans?

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Fiduciaries must act with the care, skill, prudence, and diligence that a prudent person would exercise under similar circumstances

Fiduciaries must only act in the financial interests of the employer sponsoring the plan

Fiduciaries are accountable for ensuring the plan remains tax-exempt, regardless of performance

Fiduciaries are responsible for ensuring that plan participants receive maximum tax benefits