Which of the Following Statements Regarding Contributions to Defined Contribution

question 43

Multiple Choice

Which of the following statements regarding contributions to defined contribution plans is true?

• A)Employer contributions to a defined contribution plan are not limited by the tax law.
• B)Employee contributions to a defined contribution plan are not limited by the tax law.
• C)An employee who is at least 60 years of age as of the end of the year may contribute more to a defined contribution plan than an employee who has not reached age 60 by year-end.
• D)The tax laws limit the sum of the employer and employee contributions to a defined contribution plan.

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Definitions:

Social Comparison

The process by which individuals assess their own abilities, achievements, and conditions in comparison to others.

Upward Social Comparison

The process by which individuals compare themselves to others who are perceived to be better off or superior in some way.

Downward Social Comparison

Downward social comparison is a process where individuals compare themselves to others who are less well off in order to feel better about their own situation.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions about oneself.