Any Pretax Amount Elected by an Employee as a Plan

question 90

True/False

Any pretax amount elected by an employee as a plan contribution to a § 401(k) plan that does not exceed the statutory limit is not includible in gross income in the year of deferral and is 100% vested.

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Definitions:

Minute Ventilation

Product of tidal volume times the respiratory rate.

Residual Volume

The volume of air remaining in the lungs after a forceful expiration, ensuring that gas exchange can continue at all times.

Inspiratory Reserve

The additional amount of air that can be inhaled after a normal inhalation, increasing lung volume.

Expiratory Reserve

The additional amount of air that can be forcefully exhaled after the completion of a normal expiration.