Final answer:
The true statement about contributions to defined contribution plans is that employees 60 and older can make additional 'catch-up' contributions, allowing them to save more for retirement. Other options about contribution limits are incorrect as both employer and employee contributions are bound by tax law limits.
Step-by-step explanation:
When it comes to the statements regarding contributions to defined contribution plans, the true statement is that: An employee who is at least 60 years of age as of the end of the year may contribute more to a defined contribution plan than an employee who has not reached age 60 by year end. Such contributions are often referred to as 'catch-up' contributions and are designed to allow older employees to save more for retirement.
This is true for plans such as 401(k)s and 403(b)s, where employees can save for retirement through their employer. While employer contributions to these plans are indeed a fixed amount, both employer and employee contributions to defined contribution plans are subject to limits set by tax law, contrary to what is suggested in options A and B.
The total amount of combined employer and employee contributions is also limited by tax laws, making option D incorrect. It is essential to comply with the contribution limits to maintain the tax-advantaged status of the retirement account.