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Question #27 test 06/05/97


Guest Jhagan
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Guest Jhagan

What is the maximum annual addition Participant A could receive in the limitiation period?

-Part. A participates only in the plan sponsor's profit sharing plan.

-Limition period for the plan is Jan 1, 1996

-Part. A. has gross compensation of $58,000 for the limitiation period.

Answer is $13,750. explanation?

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Is something missing here? $13,750 is 25% of $55,000 which would make sense if A made a salary deferral of $3,000 in 1996 when 415 comp was reduced by salary deferrals. Otherwise, it would appear that the answer should be 25%of $58,000 which isn't what you indicate.

I could be missing something, of course, but i can't see what (otherwise I guess I wouldn't miss it :-) )

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  • 20 years later...

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