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:

Daily Stimulation

Refers to activities or experiences that provide regular mental or physical engagement.

Play Materials

Items and resources used to facilitate play and encourage learning and development in children.

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development.

Formal Operational Stage

A phase in Jean Piaget's theory of cognitive development where individuals (around age 11 and older) gain the ability to think abstractly and reason logically.