CPM Retirement Plans & 401(k) Administration Flashcards
6 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPM Retirement Plans & 401(k) Administration flashcards as text
What is the IRS elective deferral contribution limit for a 401(k) plan for employees under age 50 in 2024?
Answer: $23,000
The IRS set the 401(k) elective deferral limit at $23,000 for 2024.
Which IRS form must an employer file annually to report information about a retirement plan's financial condition and operations?
Answer: Form 5500
Form 5500 is the annual return/report that plan administrators file with the DOL and IRS.
Under the catch-up contribution rules, how much additional can employees age 50 or older contribute to a 401(k) in 2024?
Answer: $7,500
Employees age 50 or older may contribute an additional $7,500 as a catch-up contribution to a 401(k) in 2024.
What is a 'safe harbor' 401(k) plan?
Answer: A plan that automatically passes ADP/ACP nondiscrimination tests by meeting certain employer contribution requirements
A safe harbor 401(k) satisfies ADP/ACP nondiscrimination tests automatically when the employer makes specified matching or nonelective contributions.
What does the term 'vesting schedule' refer to in a 401(k) plan?
Answer: The timeline over which employer contributions become the employee's permanent property
A vesting schedule defines when employer contributions become non-forfeitable (owned outright) by the employee.
What is the maximum combined employer and employee contribution to a 401(k) plan per participant in 2024 (excluding catch-up)?
Answer: $69,000
The IRC Section 415 limit on total annual additions (employee + employer) to a defined contribution plan is $69,000 for 2024.