A Participant, Who Is Age 38, in a Cash or Deferred

question 190

Multiple Choice

A participant, who is age 38, in a cash or deferred arrangement plan [§ 401(k) ] may contribute up to what amount in 2014?

• A) $12,000.
• B) $16,500.
• C) $17,000.
• D) $17,500.
• E) None of the above.

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Definitions:

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied is completely unresponsive to price changes.

Excise Tax

A tax levied on specific goods or services, such as tobacco, alcohol, and gasoline, often intended to discourage their use or generate revenue.

Consumers

People or collectives who buy products and services for their own consumption.

Price Floor

A minimum price buyers are required to pay for a good or service; a form of price control.