Which of the following clauses can be included in a 401(6) plan to assist in complying with the ADP and ACP tests? a) A prohibited transaction clause. b) A negative election clause. c) A discrimination clause. d) A positive contribution clause. 9. Alison earned $100,000 during the year. She elected to defer $6,000 of her earnings into her employer's 401(k) plan and her employer matched this deferral on a dollar-for-dollar basis. In the year 2018, what amount of Alison's earnings is subject to payroll taxes (when taking into account her 401(k) contributions)? a) 6,000 b) $94,000 c) $100,000 d) $106,000 10. Larry, age 45, is employed by BB Trucking as mechanic. He earns $62,000 per year and received an allocation of $30,000 to his employer-provided 401(k) profit sharing plan for the year. If BB Trucking does not match employee deferrals, what is the maximum amount Larry can defer to his 401(k) plan for 2018? (Note: Plan is on a calendar year basis.) a) $18,500 b) $24,500 c) $32,000 d) $55,000 11. An individual should be expected to state his or her retirement income objectives in which of the following metrics? a) Before-taxes, adjusted for current inflation b) Before-taxes, in current dollars c) After-taxes, in current dollars, discounted for future expected inflation d) After-taxes, in future dollars 12. Which one of the following statements with respect to 401k) plan provisions is correct? a) If there is a major unforeseen financial hardship, a participant may withdraw all or part of b) If an employee elects to defer taking his or her compensation by having it deposited in a c) If an employee elects to take his or her allocation in cash, the employee can still defer his or her 401(k) contributions. 4010) account, he or she will have 50 percent vesting of such compensation. inclusion of the cash amount in his or her gross income until the year he or she retires. d A 401(k) plan may be made available only to employees of for-profit employers