Which of the Following Statements Is Correct

question 86

Multiple Choice

Which of the following statements is correct?

• A)Contributions to Keogh plans by self-employed taxpayers are generally limited to the lesser of 15 percent of their net earned income before the Keogh deduction)or $45,000.
• B)The contribution limits for SEPs Simplified Employee Pension)are the lesser of 20 percent of net self-employment income or $51,000 for a self-employed taxpayer.
• C)Employees may elect to make annual contributions to 401k)plans up to the lesser of 15 percent of their net earned income before the 401k)deduction)or $45,000.
• D)The contribution limits for SEPs are a maximum of $17,500 $23,000 for taxpayers 50 or older).

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Definitions:

Ionization

The process by which an atom or a molecule acquires a negative or positive charge by gaining or losing electrons.

Important Factor

A significant element or aspect that contributes to a result or outcome.

Gas

A state of matter consisting of particles that have neither a defined volume nor defined shape, typically able to expand freely.

Market Revolution

Refers to the significant economic transformation in the United States during the early 19th century, characterized by rapid developments in transportation, commercialization, and industrialization, leading to profound changes in society and the economy.