Question 2 - Chapter 5 :

Calculate the maximum contribution in 2018 for a 52-year-old employee earning $140,000 annually, working in a company with the following retirement plans: (1) a 401(k) with no employer match, and (2) a money-purchase plan with an employer contribution equal to 12% of salary: A. $16,800 B. $18,500 C. $24,500 D. $41,300 E. $55,000

Question 3 - Chapter 5 :

Jack and Jill own a successful engineering company, which sponsors a 401(k) plan that requires standard eligibility. Sam, Tom and Pat are the only other employees, who are between the ages of 25 and 29 and have been with the company for a couple of years. Jack and Jill each have salaries of $200,000, while their employees have salaries ranging between $28,000 and $30,000. Jack and Jill both defer $10,000 each. Sam, who is Jack and Jills son, earns $30,000 and defers $6,000 into the 401(k) plan. Tom, who makes $28,000, defers $2,800, while Pat does not defer anything into the 401(k) plan. Which of the following statements is correct? A. The ADP for the NHC employees is 6.67% B. Jack and Jill are the only highly compensated employees. C. If the plan failed the ADP test, then the issue could be solved by providing a qualified matching contribution to all five employees. D. If the company hired a new employee, it would not increase the amount that Jack and Jill can defer during the first year of the employees employment?

Please, help me to answer these questions. Thank you