Which of the Following Statements Is Incorrect Regarding the SEP

question 30

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 2019 is $56,000.

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Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain capital assets.

Net Income

The profit of a company after all expenses and taxes have been subtracted from revenue.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, out of its profits.

Free Cash Flow

The cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets.