The annual addition to an employee's account in a qualified retirement plan:
Can be any amount as determined by the employer from year to year
Must be the same dollar amount for every full-time employee
Cannot exceed maximum limits set by the Internal Revenue Service
Usually reflects the employee's individual work performance each year
Comprehensive and Detailed Step by Step Explanation:
Qualified retirement plans are subject to federal rules governing contribution limits:
Contributionscannot exceed IRS limits (C), which are adjusted annually.
Employers may adjust amounts annually, invalidating (A).
Contributions vary by employee and do not require identical dollar amounts, making (B) incorrect.
Contributions are typically unrelated to work performance, invalidating (D).
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