Module 4

Question 0

Defined Contribution Plans: employer deduction limit

Answer 0

25% for profit sharing, money purchase, target plans, and multiple DC plans.

Question 1

Defined contribution plan: annual addition limit

Answer 1

Lesser of 100% of comp or $50,000 (aggregate for all DC plans owned by the participant)
Applies to all types of DC plans

Question 2

Money Purchase Plan - def

Answer 2

Formal type of defined contribution plan in which the employer is required to contribute a fixed amount (usually a percentage of comp)