Question

Marietta Marine, Inc., has a traditional Section 401(k) plan. The actual deferral percentage (ADP) for all...

Marietta Marine, Inc., has a traditional Section 401(k) plan. The actual deferral percentage (ADP) for all eligible non-highly compensated employees (non-HCEs) is 4%. What is the maximum ADP for the eligible highly compensated employees (HCEs) group at Marietta Marine?c

Homework Answers

Answer #1

The average contribution of HCEs can be no more than 125% of the average contribution of the NHCEs. As per given quetion if the NHCE average contribution is 4%, the HCE average contribution can be no more than 5%.

OR

2. The average HCE contribution does not exceed the average NHCE contribution plus 2%, or is no more than twice the NHCE rate, whichever is less. For example, if the NHCE average contribution rate is 4%, to pass the test, the HCE contribution rate can be no more than 6%. That’s because 4% + 2% = 6% and 4% x 2 = 8%. Because 6% is less than 8%, 6% is the maximum HCE contribution rate allowed under this option.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ann Sacks has an annual salary of $30,000. Her employer established a Section 401(k) plan, providing...
Ann Sacks has an annual salary of $30,000. Her employer established a Section 401(k) plan, providing that she may invest up to 12 percent of her salary in the plan. The employer will match the first five percent. This year Ann took an eight percent salary reduction. (a.) What is Ann's gross income from compensation? (b.) What amount is subject to social security tax? (c.) What is the employer's compensation deduction? (d.) What is Ann's total increase in her Section...
Prosper Inc. sponsors a defined benefit plan covering all employees. Prosper has not made contributions to...
Prosper Inc. sponsors a defined benefit plan covering all employees. Prosper has not made contributions to the plan for the current year. The following data relates to the plan for the current year. Projected benefit obligation, Dec. 31, estimated $190,000 Accumulated benefit obligation, Dec. 31, estimated 140,000 Plan assets at fair value, Dec. 31, estimated 170,000 Pension expense, annual 35,000 Employer’s contribution, annual ? What amount should Palace contribute to the plan by Dec. 31 in order to report an...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age 55, is the designated beneficiary on his Roth IRA. Ray's Roth IRA was established 3 years ago. Which of the following statements is(are) CORRECT? I Ray was not subject to required minimum distributions from his Roth IRA during his lifetime. II If Mary chooses to distribute the entire balance of the Roth IRA this year, the distribution may be subject to both regular income...
1) Martha (53) works part-time, in addition, she is taking classes at the local university. This...
1) Martha (53) works part-time, in addition, she is taking classes at the local university. This year, Martha was enrolled in seven hours for one semester and three for another.The university considers 12 credit hours to be full time. Martha deferred $4000 of compensation through her employer's 401(k) plan. Her AGI for 2018 was $30,500. How much is Martha's Saver's Credit, assuming no tax liability limit applies? A) $0 B) $400 C)$800 D)$2,000 2) Jack and Kendra are married and...
In 2020, Chip, an accomplished professional race car driver, is to receive a signing bonus for...
In 2020, Chip, an accomplished professional race car driver, is to receive a signing bonus for agreeing to drive for Hot-Lap International, a racing team. Hot-Lap agrees to establish a NQDC agreement with Chip to defer the bonus beyond Chip’s peak income producing years. Hot-Lap transfers the bonuses to an escrow agent, subject to the risk of forfeiture to team creditors in bankruptcy, who invests the funds in securities acting as a hedge against inflation. The bonus is deferred until...
Question 1 of 65. To qualify for a HSA Deduction, an individual must meet all of...
Question 1 of 65. To qualify for a HSA Deduction, an individual must meet all of the following criteria EXCEPT: Be in a high-deductible health plan. Use all current-year contributions to pay current-year medical expenses. Not exceed maximum contribution limits. Not be claimed as a dependent on someone else's return. Mark for follow up Question 2 of 65. Which of the following is NOT considered a deductible moving expense? Cost of storage for household goods. Cost of meals purchased while...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the marginal cost of the last unit sold. II. A monopolist with positive marginal costs and facing a linear demand curve always sets a quantity (or price) such that it sells on the elastic section of the demand curve. III. A monopolist regulated by marginal-cost pricing regulation sells at a price that covers its variable and fixed costs of production, but it still causes a...
Team 5 answer the questions What are 4 key things you learned about the topic from...
Team 5 answer the questions What are 4 key things you learned about the topic from reading their paper? How does the topic relate to you and your current or past job? Critique the paper in terms of the organization and quality. Incentive Systems             In this paper, we will focus primarily on financial rewards that companies use to attract, retain and motivate the brightest and most talented candidates in the labor market. By providing a reward system that...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT