Which of the Following Statements Regarding Contributions to Defined Contribution

question 43

Multiple Choice

Which of the following statements regarding contributions to defined contribution plans is true?

• A)Employer contributions to a defined contribution plan are not limited by the tax law.
• B)Employee contributions to a defined contribution plan are not limited by the tax law.
• C)An employee who is at least 60 years of age as of the end of the year may contribute more to a defined contribution plan than an employee who has not reached age 60 by year-end.
• D)The tax laws limit the sum of the employer and employee contributions to a defined contribution plan.

---

Definitions:

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that prohibits the government from taking private property for public use without "just compensation."

Fair Market Value

The price at which a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts and not under any compulsion, would likely agree to transact.

Deontological Ethical Theories

Ethical theories that place emphasis on adherence to duties and rules as the basis of moral actions.

Actions

Legal proceedings taken in a court or the steps taken in the execution of a legal right.