The flashcards below were created by user
Anonymous
on FreezingBlue Flashcards.

What is the Employee elective deferral limit for a Traditional 401K and Safe Harbor 401K plan?
$17,000

what is the contribution limit for an employee or employer (elective contribution limit) 401K contribution?
$17,000

What is the maximum catch up contribution for a 401K?
$5,500 or a total of $23,000

What is the maximum contribution limit for an IRA of any kind.
$1,000

What is the maximum employer/employee contribution to a 401K of any kind?
 Cannot exceed the lesser of $51,000 or 100% of compensation.

What is the maximum considered compensation when determining employer and employee contributions to a 401K, an IRA
$255,000

What is a Simplified Employee Pension Plan?
SEP IRA no more than 50 employees

Who funds a SEP IRA
The boss foots the bill!

What is the contribution limit on a SEP IRA?
25% of employees earned income or $51,000. Whichever is less. This is different from 401K which is 100% of compensation

What are the restrictions for the employee to participate in a SEP IRA
Must be at least 21 and worked for employer 3 of the last 5 years, and has been paid at least $550 in the last 12 months.

What is the catchup contribution for a SEP IRA
Trick Question!!! There is no catchUp for a SEP. SEP's can't catch up!
However, if the SEP is contained WITHIN a traditional IRA and it is allowed, a catchup contribution up to the standard $5,500 or $6,500 if over 50 are allowed.

What is a "Simple IRA"
Match plan for businesses with 100 or less employees AND no other retirement plan.

What are the numbers for a SIMPLE IRA
 Employee Contribution Limit $12,000
 CatchUp  $2,500 ($14,500 limit)
 Same Max of $255,000

What is a KEOGH plan?
They are for self employed folks. Also called an HR10. Standard Contribution limits and Maximum Considered Compensation.

403b?
Tax Sheltered Annuities for public school employees and nonprofits. Limits and contributions are standard.

What are the standard limits all plans seem to have?
Contribution limit: 100% or $51,000, which ever is LESS
Maximum Considered Compensation $255,000
Employee elective deferral limit  $17,500
Catchup Contribution  $5,500 ($23,000)

What is the standard Contribution Limit?
100% or $51,000, whichever is less.

What is the standard Maximum Considered Compensation
$255,000

What is the standard Employee elective deferral limit?
$17,500

What is the standard Catch up Contribution
$5,500 to a maximum of ($23,000)

Which plan has different limits from the standard?
SIMPLE IRA  it's not simple because the limits are different! The contribution and catch up are different. ($12,000 and $2,500/$14,000)

What is different about a Section 457 plan for Government employees and tax exempt organizations?
Catch up is $17,500/$35,000

