Which of the Following Statements Is Incorrect Regarding the SEP

question 21

Multiple Choice

Which of the following statements is incorrect regarding the SEP IRA?

• A)Both employers and employees can contribute to the plan.
• B)Contributions made by the due date of the tax return can be treated as made on the last day of the related tax year.
• C)Employer contributions must be nondiscriminatory.
• D)The maximum contribution for 2016 is $53,000.

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Definitions:

Internal Respiration

The exchange of gases between the blood and body cells, involving the intake of oxygen and release of carbon dioxide from metabolic processes.

External Respiration

The exchange of gases between the atmosphere and the blood through the alveoli of the lungs.

Tissue Respiration

The process by which oxygen is transported to cells and carbon dioxide is transported away, vital for cellular metabolism.

Main Bronchus

The primary division of the trachea that leads into each lung, facilitating air flow.