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Which of the following statements regarding employer contributions to Profit-sharing plans are true? I Contributions are discretionary, but must be substantial and recurring. II No
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Which of the following statements regarding employer contributions to Profit-sharing plans are true?
I Contributions are discretionary, but must be substantial and recurring.
II No requirement of company profit for contribution.
III Limited to 25% of total employer-covered compensation.
IV Employer may add $58,000 in addition to the employee's $19,500 contribution for the 2021 tax year.
Only I and IV are true
Only II and III are true
I, II, III and IV are all true
Only I, II and III are all true
Which of the following statements regarding employer contributions to Profit-sharing plans are true?
I Contributions are discretionary, but must be substantial and recurring.
II No requirement of company profit for contribution.
III Limited to 25% of total employer-covered compensation.
IV Employer may add $58,000 in addition to the employee's $19,500 contribution for the 2021 tax year.
| Only I and IV are true | ||
| Only II and III are true | ||
| I, II, III and IV are all true | ||
| Only I, II and III are all true |
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