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

question 100

Multiple Choice

Which of the following statements is correct regarding limitations on employer's contributions to qualified retirement plans in 2019?

• A)Defined benefit plans are limited to an annual benefit to an employee of the lesser of $56,000 or 100% of the employee's average compensation for the highest three years.
• B)Defined contribution plan contributions are limited to the lesser of $225,000 or 25% of an employee's compensation.
• C)Defined contribution plan contributions are limited to the lesser of $56,000 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:

Frictional Unemployment

Short-term unemployment that occurs when people are between jobs or entering the workforce for the first time, often seen as a natural part of a healthy economy.

Unemployment Spells

Periods during which an individual is without work but is available for and seeking employment.

Unemployed Person

An individual who is capable of working, actively seeking work, but unable to find a job.

U-3 Measure

A specific unemployment rate measure that counts the number of unemployed individuals who are actively seeking employment as a percentage of the labor force.