This is Accounting Question. You need to solve the problem. (This question contains content and provides enough information to solve it)

1. Assume a corporate employer maintains a 401(k) profit sharing plan for its 6 employees in 2019. Employer contributions are allocated based on each employees compensation which is as follows:

Employee Compensation

A $500,000

B $120,000

C $80,000

D $60,000

E $50,000

F $40,000

Assume that all employees contribute the maximum amount, including the maximum elective deferral, to the plan and that B is the only employee over age 50. What is the maximum elective deferral contribution that each employee can make? What is the maximum deductible employer contribution the employer can make for each employee? If salary reduction amounts are too large in 2020, how can they be corrected and when can that correction be made?