The Maximum Contribution That Can Be Made on Behalf of an Employee

question 41

Multiple Choice

The maximum contribution that can be made on behalf of an employee in a Keogh defined contribution money purchase plan is:

• A)The lower of 15% of employee's taxable compensation or $51,000
• B)The lower of 13.0435% of employee's taxable compensation or $51,000
• C)The lower of 20% of employee's taxable compensation or $51,000
• D)The lower of 25% of employee's taxable compensation or $51,000

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Definitions:

Inexpensive

Not costing a lot of money; affordable.

Cross-Sectional Design

A research method in which data is collected from a population, or a representative subset, at one specific point in time.

Longitudinal Study

A research design that involves repeated observations of the same variables (such as people) over short or long periods of time.

Early Thirties

A period in adult life approximately between the ages of 30 and 34, often associated with significant life transitions and decisions.