Which Statement Is Correct Regarding SIMPLE Retirement Plans

question 639

Multiple Choice

Which statement is correct regarding SIMPLE retirement plans?

• A) SIMPLE plans are not subject to nondiscrimination rules.
• B) This plan can only be adopted by employers with 50 or fewer employees.
• C) Employer contributions must vest within three years.
• D) Only the employer can contribute to the plan.

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Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most occurrences take place around the mean, tapering off symmetrically towards the extremes.

T-statistic

A type of statistic used in hypothesis testing when the sample size is small and the population variance is unknown, it is based on the Student's t-distribution.

Z-score

A statistic that tells you how many standard deviations a given value is from the mean.

Sample Mean

The average value of a sample set, calculated by summing all observations and dividing by the number of observations.