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.

Recognize the concepts of wastage, fragmentation, and actualized policy in social service delivery.

Learn the significance of electoral politics in shaping social policy.

Understand various policy strategies, such as compensatory and opportunity-enhancing policies.

Differentiate between types of social policies and their purposes.

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Definitions:

Trust

A legal arrangement in which one party holds property or assets for the benefit of another, guided by the terms set in the trust agreement.

Interest Earnings

Income received from investments in interest-bearing financial instruments, such as savings accounts, CDs, or bonds.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest earning interest over time.

Annual Scholarship

A financial award given to students on a yearly basis to support their education.