Small Business 401k Plans Trivia

A small business 401k is also known by its other names.

Individual(K)
Solo 401k
Self Employed 401(k)
All of the above

Only sole proprietors, and not partnerships & corporations can own Small Business 401k plans?

True
False

You can require an employee to perform atleast ___ year of work service before he/she becomes eligible to make salary deferral 401k contributions.

4
3
2
1

For eligibility purposes, an employee has done 1 year of service if he/she has worked atleast _____ hours during the year.

1,000
1,500
1,600
2,000

Salary deferral contribution limit for small business 401k plans for the year 2007 is:

$14,500
$15,000
$15,500
$16,000

A small business owner can contribute upto ___% of his net business income towards his small business 401k plan, but no more than $_____ for 2007.

20%; $40,000
25%, $45,000
30%, $48,000
32%, $50,000

The Small business 401k allows you to deduct plan contributions of up to ___% of your eligible compensation.

20%
25%
30%
15%

For plan purposes, total compensation is limited to $_______ for 2006 and $_________ for 2007.

$200,000; $205,000
$210,000; $215,000
$218,000; $220,000
220,000; $225,000

A small business 401k plan must be established by when?

December 31st, of the current year
April 15th, the tax filing deadline
Last date of the fiscal operating year
September 1, of the current year

John is a small businessman and earned $85,000 net income for 2006. His maximum employer matched small business 401k contribution limit for 2006 is:

$12,750 (15% x $85,000)
$17,000 (20% x $85,000)
$21,250 (25% x $85,000)
$25,500 (30% x $85,000)

401k Contribution Limits
2007	$15,000	$20,500
2008	$15,500	$20,500
2009	$16,500	$22,000
2010	$16,500	$22,000
2011	$16,500	$22,000
2012	$17,000	$22,500

Roth IRA Contribution Limits
2008	$5000	$6000
2009	$5000	$6000
2010	$5000	$6000
2011	$5000	$6000
2012	$5000	$6000

Simple 401k / IRA Contribution Limits
2008	$10,500	$13,000
2009	$11,500	$14,000
2010	$11,500	$14,000
2011	$11,500	$14,000
2012	$11,500	$14,000

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Small Business 401k Plans Trivia

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