The profit sharing plan, Going Higher Construction sponsors

The profit sharing plan

Assignment Help Financial Accounting

Reference no: EM13915316

Going Higher Construction sponsors a 401(k) profit sharing plan. In the current year, Going Higher Construction contributed 25% of each employees' compensation to the profit sharing plan. The ADP of the 401(k) plan for the NHC was 3.5%. If Bob, age 57, earns $100,000 and is a 6% owner, what is the maximum amount that he may defer into the 401(k) plan for 2015?

a. $5,500

b. $11,500

c. $18,000

d, $24,000

Which of the following vesting schedules may a top-heavy qualified profit sharing plan use?

a. 1 to 5 year graduated

b. 5-year cliff

c. 3 to 7 year graduated

d. 4 to 8 year graduated

Each of the following are requirements imposed by law on qualified tax-advantaged retirement plans EXCEPT:

a. Plan documentation

b. Employee vesting

c. Selective employee participation

d. Employee communications

Reference no: EM13915316

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