Profit-sharing plans and stock bonus plans have similarities…

Profit-sharing plans and stock bonus plans have similarities and differences. Which of the followingstatements are correct regarding these plans?1. Both plans allow participants to vote their shares held by the plan.2. Stock bonus plans and profit-sharing plans can make lump-sum distributions of employersecurities at the termination of an employee.

Kelley is a participant in his employer-sponsored ROTH 401(k…

Kelley is a participant in his employer-sponsored ROTH 401(k) plan during part of the year. Later in the year, Kelley becomes a participant in his new employer’s 403(b) plan. Kelley can defer an aggregate maximum of $23,000 (2024) (plus $7,500 if age 50 and over) between 401(k) plan and the 403(b) plan. 

A non-safe harbor 401(k) plan allows plan participants the o…

A non-safe harbor 401(k) plan allows plan participants the opportunity to defer taxation on a portion of regular salary simply by electing to have such amounts contributed to the plan instead of receiving them in cash. Which of the following statements are rules that apply to 401(k) salary deferrals?1. Salary deferral into the 401(k) plan is limited to $23,500 for individuals younger than 50 for 2025.2. A non-discrimination test called the actual deferral percentage test applies to salary deferral amounts.