What Is the Maximum Contribution for Defined Contribution Plans in 2015

question 8

Multiple Choice

What is the maximum contribution for defined contribution plans in 2015?

• A) Lesser of $50,000 or 50 percent of compensation
• B) Lesser of $40,000 or 100 percent of compensation
• C) Lesser of $53,000 or 100 percent of compensation
• D) A flat $50,000
• E) Contribution is based upon adjusted gross income

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Definitions:

Depreciation Expense

Methodically spreading out the expense of a physical asset across its period of usability.

Capital Lease

A lease classified as a purchase by the lessee, whereby the lessee records the leased asset as an owned asset on the balance sheet.

Bargain Purchase Option

A lease agreement provision allowing the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.

Long-term Liability

A long-term liability is a financial obligation of a company that is due beyond one year, such as bonds payable, long-term leases, and pension obligations.