QKA 2 Unit 1 Test: 10 Questions

Question 1

Which of the following are permissible base definitions of 415 compensation? (Select all that apply)

Answer 1

A) W2 Wages
B) Wages for Federal Income Tax WH
C) Basic Rate of Pay Excluding Deferrals
D) wages for Social Security benefit calculations

Question 2

415 compensation is used for determining (select all that apply)

Answer 2

A) HCEs
B) Allocations for Employer Contributions
C) Key Employees
D) whether allocations of employer contributions are nondiscriminatory

Question 3

414S compensation is used for determining (select all that apply)

Answer 3

A) HCEs
B) allocations of employer contributions
C) whether the plan is top-heavy
D) weather, allocations of employer contributions are nondiscriminatory

Question 4

A plan is required to determine employer nonelective allocations, using a definition of compensation that satisfies 414S

Answer 4

False

Question 5

414S compensation can exclude compensation paid prior to the time and employee becomes a Participant true or false

Answer 5

True

Question 6

Harold is an HCE, and is the only employee at his company who receives a bonus. Will his companies 401(k) plan be able to exclude bonuses for purposes of allocating a non-elective contribution?

Answer 6

Yes, because he is an HCE.

Question 7

Hannah terminates employment with ABC on 2/7. She received her last paycheck on 2/15. It consists of $5k for her last week of work, $6k as a payment for unused vacation, & $7k as severance payment. If the plants definition of 415 compensation includes all permissible types of post, severance calm, then the amount of the paycheck that is 415 compensation is:

Answer 7

A) $5k
B) $11k
C) $12k
D) $18k

Question 8

415 compensation for a partner in a partnership is referred to as

Answer 8

A) earned capital
B) earned compensation
C) earned income
D) earned W-2 wages

Question 9

Each month Kay is paid$4k of base pay, $300 and reported tips & $10 of taxable group term life insurance. Her employers 401(k) uses the W-2 definition for 415 comp with no exclusions. If Kate elected to defer 5% of her compensation, how much should be withheld from her pay each month?

Answer 9

A) $200
B) $205
C)$215
D)$215.50

Question 10

Ashley was paid 335,000 of W-2 for 2022. The 2022 IRC 401 817 limit was $305,000. She also elected to refer $20,500 of W-2 on a pre-tax basis. The plan basis, employer, contributions or compensation minus deferrals what is the amount of carb used to calculate the employer contribution?

Answer 10

A) $275k
B) $284.5k
C) $305k
D)$335k

Question 11

Based on the information, what is Participant A’s actual deferral ratio (ADR)?
* Participant a earned $200,000 in compensation for the plan your
*