Which of the Following Statements Is Correct Regarding Limitations on Employer's

question 55

Multiple Choice

Which of the following statements is correct regarding limitations on employer's contributions to qualified retirement plans in 2016?

• A)Defined benefit plans are limited to an annual benefit to an employee of the lesser of $53,000 or 100% of the employee's average compensation for the highest three years.
• B)Defined contribution plan contributions are limited to the lesser of $210,000 or 25% of an employee's compensation.
• C)Defined contribution plan contributions are limited to the lesser of $53,000 or 100% of an employee's compensation.
• D)If an employer has more than one type of qualified plan,a maximum deduction of 100% of compensation is allowed.

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Definitions:

Availability Heuristic

A psychological shortcut that leverages the readily available examples in someone's consciousness when deliberating on a particular matter, concept, methodology, or decision.

Airplane Crash

An incident involving the failure and destruction of an aircraft during flight, usually leading to casualties.

Automobile Crash

An incident involving one or more vehicles colliding with another vehicle, object, pedestrian, or cyclist, often resulting in damage or injury.

Framing Effect

The influence of context or presentation on people's decisions and preferences, often used in decision-making research.