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:

Assessment Technique

A method or tool used to evaluate the performance, skill level, or knowledge of an individual or group.

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MMPI-2

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CPI

stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, often used as an indicator of inflation.