CPM CPM Retirement Plans & 401(k) Administration

Question 1

What is the IRS elective deferral contribution limit for a 401(k) plan for employees under age 50 in 2024?

Accepted Answer

$23,000

Answer

$20,500

Answer

$22,500

Answer

$19,500

Question 2

Which IRS form must an employer file annually to report information about a retirement plan's financial condition and operations?

Accepted Answer

Form 5500

Answer

Form 5498

Answer

Form 1099-R

Answer

Form W-2

Question 3

Under the catch-up contribution rules, how much additional can employees age 50 or older contribute to a 401(k) in 2024?

Accepted Answer

$7,500

Answer

$5,000

Answer

$6,500

Answer

$8,000

Question 4

What is a 'safe harbor' 401(k) plan?

Accepted Answer

A plan that automatically passes ADP/ACP nondiscrimination tests by meeting certain employer contribution requirements

Answer

A plan exempt from all IRS reporting

Answer

A plan that only allows Roth contributions

Answer

A plan restricted to highly compensated employees

Question 5

What does the term 'vesting schedule' refer to in a 401(k) plan?

Accepted Answer

The timeline over which employer contributions become the employee's permanent property

Answer

The schedule for filing Form 5500

Answer

The deadline for employees to enroll in the plan

Answer

The frequency of investment rebalancing

Question 6

What is the maximum combined employer and employee contribution to a 401(k) plan per participant in 2024 (excluding catch-up)?

Accepted Answer

$69,000

Answer

$46,000

Answer

$56,000

Answer

$66,000