Fundamental Payroll Certification Payroll Benefits and Retirement Plans

Question 1

What is the IRS employee deferral limit for a 401(k) plan in 2024?

Accepted Answer

$23,000

Answer

$19,500

Answer

$22,500

Answer

$20,500

Question 2

Which type of retirement plan guarantees a specific monthly benefit at retirement based on salary and years of service?

Accepted Answer

Defined benefit plan

Answer

401(k)

Answer

Defined contribution plan

Answer

SIMPLE IRA

Question 3

What is the catch-up contribution limit for employees aged 50 and over in a 401(k) plan for 2024?

Accepted Answer

$7,500

Answer

$5,000

Answer

$6,500

Answer

$3,000

Question 4

A SIMPLE IRA plan may be established by employers with no more than how many employees?

Accepted Answer

100

Answer

25

Answer

50

Answer

250

Question 5

Which retirement plan requires the employer to contribute the same percentage of compensation for all eligible employees?

Accepted Answer

SEP IRA

Answer

401(k)

Answer

403(b)

Answer

SIMPLE IRA

Question 6

Pre-tax employee contributions to a traditional 401(k) plan reduce the employee's taxable wages for which tax?

Accepted Answer

Federal income tax withholding

Answer

FICA taxes

Answer

State unemployment tax

Answer

Medicare tax