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:

Radioactive Material

Substances that emit radiation as a result of the spontaneous disintegration of atomic nuclei.

Strip Mines

Large, open-pit mines where layers of soil and rock are removed to access underlying minerals.

Underground Machines

No definitive context, but likely refers to equipment used for underground operations such as mining or tunnel construction.

Oil Shale

A fine-grained sedimentary rock containing organic materials that can be processed to produce shale oil, a type of unconventional oil.