What is the total additional employer contribution that can be made on behalf of Benjamin in 2022?

What is the total additional employer contribution that can be made on behalf of Benjamin in 2022?

• A. $20,500
• B. $117,000
• C. $61,000
• D. $122,000

Answer: (B)

To determine the total additional employer contribution that can be made on behalf of Benjamin in 2022, it's important to consider the contribution limits associated with retirement plans, such as a 401(k) plan. In 2022, the maximum employee elective deferral limit for a 401(k) plan was $20,500, and individuals aged 50 and over could make an additional catch-up contribution of $6,500, bringing their combined limit to $27,000. However, this only pertains to employee contributions. The overall contribution limit for a 401(k), which includes both employee contributions and employer contributions (match or profit-sharing contributions), is $61,000 for those under the age of 50 or $67,500 for those aged 50 and over. If Benjamin is under 50, the employer contribution could be any amount up to the remaining limit after employee contributions have been accounted for. To calculate the additional employer contribution: 1. Start with the overall contribution limit of $61,000. 2. Subtract the maximum employee contribution plus any catch-up contributions (if applicable). If we assume Benjamin has elected the full $20,500 (the employee contribution limit), the employer contribution could make up the remainder. Therefore

To determine the total additional employer contribution that can be made on behalf of Benjamin in 2022, it's important to consider the contribution limits associated with retirement plans, such as a 401(k) plan.

In 2022, the maximum employee elective deferral limit for a 401(k) plan was $20,500, and individuals aged 50 and over could make an additional catch-up contribution of $6,500, bringing their combined limit to $27,000. However, this only pertains to employee contributions.

The overall contribution limit for a 401(k), which includes both employee contributions and employer contributions (match or profit-sharing contributions), is $61,000 for those under the age of 50 or $67,500 for those aged 50 and over. If Benjamin is under 50, the employer contribution could be any amount up to the remaining limit after employee contributions have been accounted for.

To calculate the additional employer contribution:

1. Start with the overall contribution limit of $61,000.

2. Subtract the maximum employee contribution plus any catch-up contributions (if applicable).

If we assume Benjamin has elected the full $20,500 (the employee contribution limit), the employer contribution could make up the remainder. Therefore