Plan Deferral Limit And Plan Match Limit Testing

5 Questions | Total Attempts: 150

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Plan Deferral Limit And Plan Match Limit Testing

Questions and Answers
  • 1. 
    The PDL and PML test limits are based solely on the IRS limits.
    • A. 

      True

    • B. 

      False

  • 2. 
    ADP caps the PDL limit to 90% 
    • A. 

      True

    • B. 

      False

  • 3. 
    One reason a plan would fail the PDL test could be due to a plan administrator manually inputting an employee’s contribution into payroll.
    • A. 

      True

    • B. 

      False

  • 4. 
    PDL Failures plus any corresponding gain or loss are to be calculated through 12/31 of the prior plan year
    • A. 

      True

    • B. 

      False

  • 5. 
    Two common reasons for a plan to fail the PML test are a plan reversing payroll contributions in payroll but forgetting to reverse the match and a plan calculating the match on compensation over the annual IRS limit
    • A. 

      True

    • B. 

      False

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