Posie is an employee of Geiger Technology and earns $90,000 in 2018. The maximum amount Geiger can contribute to a profit sharing plan on behalf of Posie is
A)$6,000
B)$13,500
C)$22,500
D)$25,000
E)$55,000

Question

Quizplus · Accepted Answer

In 2018, the maximum contribution to a profit-sharing plan is 25% of the employee's compensation, up to a maximum of $55,000. For Posie, 25% of $90,000 is $22,500.

Posie Is an Employee of Geiger Technology and Earns $90,000