Sew What, the best seamstress shop in town, sponsors a 401(k) plan. The plan provides a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sew What, the best seamstress shop in town, sponsors a 401(k) plan. The plan provides a dollar-for-dollar match for employee contributions up to three percent and has immediate vesting for all contributions. For ADP purposes, the company has not made the top 20 percent election for the determination of who is highly compensated. The company has the following employee information: Employee Ownership Compensation Elective Deferral Deferral Percentage Lois 93% $201,000 $14,000 6.97% Tarik 5% $170,000 $15,861 9.33% Karen 2% $160,000 $14,400 9.00% Jeanette $40,000 $4,000 10.00% Joyce $30,000 0.00% Ronnie $30,000 $1,800 6.00% Kali $30,000 Which of the following statements is correct? 0.00% Karen is not highly compensated. O Joyce and Kali are not considered when calculating the ADP test because they do not contribute. O The plan passes the ADP test if Joyce and Kali were not eligible. O The top-heavy rules require Sew What to make a 3% contribution for Jeanette, Joyce, Ronnie, and Kali. Sew What, the best seamstress shop in town, sponsors a 401(k) plan. The plan provides a dollar-for-dollar match for employee contributions up to three percent and has immediate vesting for all contributions. For ADP purposes, the company has not made the top 20 percent election for the determination of who is highly compensated. The company has the following employee information: Employee Ownership Compensation Elective Deferral Deferral Percentage Lois 93% $201,000 $14,000 6.97% Tarik 5% $170,000 $15,861 9.33% Karen 2% $160,000 $14,400 9.00% Jeanette $40,000 $4,000 10.00% Joyce $30,000 0.00% Ronnie $30,000 $1,800 6.00% Kali $30,000 Which of the following statements is correct? 0.00% Karen is not highly compensated. O Joyce and Kali are not considered when calculating the ADP test because they do not contribute. O The plan passes the ADP test if Joyce and Kali were not eligible. O The top-heavy rules require Sew What to make a 3% contribution for Jeanette, Joyce, Ronnie, and Kali.
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Explain incremental cash flow, externality? Why is timing of cash flows important? What is scenario analysis? Would a project's NPV for a firm be higher or lower if the firm used accelerated rather...
-
Explain the difference between a direct loss and an indirect or consequential loss.
-
EasiMover Company had the following information at year end: Finished goods inventory, January 1 $20,000 Finished goods inventory, December 31 $27,000 Work in process inventory, January 1 $30,000...
-
Think of a time when you have been very satisfied with a job you have held. What made that job satisfying? Also think of a time when you have been dissatisfied with a job you have held. What made...
-
In August 2008, Mexican pesos were trading at $0.10 on the foreign exchange market. By November, they were down to $0.07, a decline of 30%. Explain the fall in the price of a peso using supply and...
-
Capital budgeting - Part 1: Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $9,000 and sell its old fully-depreciated washer for...
-
With acceptable level of liquidity; rational balance between debt and equity is key to success for any organization .You are supposed to go through the annual report of two listed firms of same...
-
How do implicit biases and cognitive schemas influence the formation and evolution of organizational subcultures, and what measures can be implemented to promote inclusivity and equity within such...
-
If Rainbow Manufacturing has actual monthly sales of $2,100,000 and desires an operating profit of $75,000 per month, what is the margin of safety in sales dollars?
-
What are two real-world examples related to environmental science that is related to potential energy being added to the system to keep things in motion? Based on observations, make an estimation of...
-
A Company has the following information: Standard Cost: 1lb per Zippy at $4.50 per lb This week 2,000 lbs of material was purchased to make 1500 Zippies. The materials cost a total of $8,000 The...
-
Based off the WSJ section of Personal Finance by Anne Tergesen and Jeremy Olshan "The right amount of cash to keep at home for emergencies. Hint: not $480,000.", explicitly identified observations of...
-
ABC Manufacturing Co. has a total capitalization of 1,00,00,000 and normally earns Tk. 10,00,000 (before interest and taxes). The financial manager of the firm wants to take a decision regarding the...
-
As indicated by mutual fund flows, investors tend to beat the market seek safety invest in last year's winner invest in last years loser
-
With a subsidy, a. the price producers receive is the price consumers pay plus the subsidy. b. the subsidy leads to the production of more than the efficient level of output. c. there is a deadweight...
-
After the imposition of a tax, a. consumers pay a higher price, including the tax. b. consumers lose consumer surplus. c. producers receive a lower price after taxes. d. producers lose producer...
-
In the case of a price floor, if the government buys up the surplus, a. consumer surplus decreases. b. producer surplus increases. c. a greater deadweight loss occurs than with a deficiency payment...
Study smarter with the SolutionInn App