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

question 18

Multiple Choice

Which of the following statements is correct regarding limitations on employer's contributions to qualified retirement plans in 2017?

• A)Defined benefit plans are limited to an annual benefit to an employee of the lesser of $54,000 or 100% of the employee's average compensation for the highest three years.
• B)Defined contribution plan contributions are limited to the lesser of $215,000 or 25% of an employee's compensation.
• C)Defined contribution plan contributions are limited to the lesser of $54,000 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:

Price Levels

A summary measure of the current prices for goods and services across the whole economic output.

Shortage

A situation where the demand for a product exceeds its supply at a particular price.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, with higher elasticity indicating greater sensitivity.

Ticket Revenue

The income generated through the sale of tickets for events, performances, or transportation services.