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

question 1756

Multiple Choice

Which of the following statements is correct regarding limitations on employer's contributions to qualified retirement plans in 2018?

• A) Defined contribution plan contributions are limited to the lesser of $55,000 or 100% of an employee's compensation.
• B) If an employer has more than one type of qualified plan, a maximum deduction of 100% of compensation is allowed.
• C) Defined contribution plan contributions are limited to the lesser of $220,000 or 25% of an employee's compensation.
• D) Defined benefit plans are limited to an annual benefit to an employee of the lesser of $55,000 or 100% of the employee's average compensation for the highest three years.

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Definitions:

Cervical Cancer

A malignant tumor of the cervix, the lower part of the uterus, often caused by the human papillomavirus (HPV).

Ovarian Cancer

A type of cancer that originates in the ovaries, characterized by the abnormal growth of cells that can invade or spread to other parts of the body.

Corpus Albicans

The fibrous scar tissue that forms from the degenerated corpus luteum within the ovary after ovulation when pregnancy does not occur.

Graafian Follicle

A mature ovarian follicle that releases an egg during ovulation.