Discuss all of the following statements and state why you agree or disagree with each of them individually.
1. A defined benefit plan can help an older controlling employee in a small business maximize tax-deferred savings.
2. The Internal Revenue Code sets a maximum limit on the projected annual benefit that a defined benefit plan can provide.
3. An employee cannot be covered under both a defined benefit and a defined contribution plan.
4. Defined benefit plans that use the flat amount formula provide a retirement benefit that is a percentage of the employee’s average earnings