Ace Your Retirement Planning: CRPC Practice Exam 2025 – Plan, Play, Prosper!

Question: 1 / 660

What is the maximum contribution to an integrated profit sharing plan if a company has a payroll of $800,000?

$150,000

$200,000

In an integrated profit-sharing plan, the maximum contribution that a company can make is generally tied to a percentage of the total payroll. In many cases, this limit is set at 25% of the eligible payroll amount. Given a payroll of $800,000, the calculation for the maximum contribution would be:

\[

25\% \times 800,000 = 200,000

\]

Therefore, the maximum contribution to the profit-sharing plan in this scenario is indeed $200,000.

Understanding this concept is essential for effective retirement planning, as it allows companies to allocate their resources appropriately while maximizing the benefits for their employees. The other options presented exceed the calculated maximum contribution limit based on the payroll percentage, making them unfeasible within the guidelines of an integrated profit-sharing plan.

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$250,000

$300,000

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