The Contribution Limit for a Defined Contribution Plan for 2018

question 89

Multiple Choice

The contribution limit for a defined contribution plan for 2018 is:

• A) $5,500
• B) $18,500
• C) $55,000
• D) $220,000

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Definitions:

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from total assets.

Historical Cost

The actual cost of an asset at time of purchase.

Legal Liability

Obligations under the law arising from civil actions or claims against an entity or individual, encompassing contractual obligations and tort claims.

Limited Life

A concept depicting that an entity or asset has a finite operational life or duration of existence.