QuestionMay 29, 2025

A tax-qualified plan (TQ) must pay benefits when a claimant A) needs substantial assistance with at least 2 ADLs, expected to last at least 90 days B) complies with all of these C) is chronically ill D) has a severe cognitive impairment

A tax-qualified plan (TQ) must pay benefits when a claimant A) needs substantial assistance with at least 2 ADLs, expected to last at least 90 days B) complies with all of these C) is chronically ill D) has a severe cognitive impairment
A tax-qualified plan (TQ) must pay benefits when a claimant
A) needs substantial assistance with at least 2 ADLs, expected to last at least 90 days
B) complies with all of these
C) is chronically ill
D) has a severe cognitive impairment

Solution
4.7(282 votes)

Answer

C) is chronically ill Explanation 1. Analyze the Options A tax-qualified plan (TQ) must pay benefits when a claimant meets specific conditions related to health and ability. The options provided are different criteria for eligibility. 2. Determine Eligibility Criteria According to IRS guidelines, a TQ plan pays benefits if the claimant is chronically ill, which includes needing substantial assistance with at least 2 ADLs for at least 90 days or having a severe cognitive impairment. 3. Evaluate Each Option - Option A matches part of the criteria for being chronically ill. - Option C directly states "is chronically ill," covering both ADL and cognitive impairment criteria. - Option D covers severe cognitive impairment, another aspect of being chronically ill. - Option B suggests compliance with all criteria, but typically, meeting any one condition suffices.

Explanation

1. Analyze the Options<br /> A tax-qualified plan (TQ) must pay benefits when a claimant meets specific conditions related to health and ability. The options provided are different criteria for eligibility.<br /><br />2. Determine Eligibility Criteria<br /> According to IRS guidelines, a TQ plan pays benefits if the claimant is chronically ill, which includes needing substantial assistance with at least 2 ADLs for at least 90 days or having a severe cognitive impairment.<br /><br />3. Evaluate Each Option<br /> - Option A matches part of the criteria for being chronically ill.<br /> - Option C directly states "is chronically ill," covering both ADL and cognitive impairment criteria.<br /> - Option D covers severe cognitive impairment, another aspect of being chronically ill.<br /> - Option B suggests compliance with all criteria, but typically, meeting any one condition suffices.
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