Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 - Free CRPC Practice Questions and Study Guide

The correct answer reflects the maximum amount that can be contributed to a profit-sharing plan as a deductible contribution for participants who are eligible. For the year 2023, the limit on contributions to a profit-sharing plan, which includes employer contributions, is set to a maximum of $66,000. However, since you are inquiring specifically about the deductible contributions of an employee earning $160,000, the relevant figure for the employee’s salary deferral contribution, which can also contribute to the total deductible contributions, must be considered.

In this case, individuals under the age of 50 can defer up to $22,500 for the year 2023, and if they are over 50, they can make catch-up contributions bringing that amount to $30,000. But if we focus strictly on the profit-sharing contributions made by the employer, a participant can have the total contribution from both employer and employee contributions as much as $66,000. However, accounting for the limits applicable due to the participant's salary and bases on maximum thresholds, the typical annual deductible contribution available for a single participant adjusted for lower limits tends to be around $40,000 for the employer's share, provided that it does not exceed the 100% rule.