Which of the following statements is correct regarding limitations on employer's contributions to qualified retirement plans in 2018?
A) Defined contribution plan contributions are limited to the lesser of $55,000 or 100% of an employee's compensation.
B) If an employer has more than one type of qualified plan, a maximum deduction of 100% of compensation is allowed.
C) Defined contribution plan contributions are limited to the lesser of $220,000 or 25% of an employee's compensation.
D) Defined benefit plans are limited to an annual benefit to an employee of the lesser of $55,000 or 100% of the employee's average compensation for the highest three years.
Correct Answer:
Verified
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