The Rector Corporation Maintains a SIMPLE-IRA Retirement Plan for Its

question 65

Multiple Choice

The Rector Corporation maintains a SIMPLE-IRA retirement plan for its employees.The company has notified its employees that in 2013 it will fund the SIMPLE-IRA by matching an employee's contribution up to a maximum of 2% of the employee's salary.Avis' salary in 2013 is $240,000 and she contributes $2,800 to the plan.What amount must Avis contribute on Andorra's behalf?

• A)$2,800
• B)$3,000
• C)$3,400
• D)$4,800
• E)$4,900

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Definitions:

Combination Approach

A strategy that combines various methods, techniques, or practices to achieve a more effective outcome or solution.

Straight Salary

A fixed regular payment made by an employer to an employee, regardless of the employee's performance or hours worked.

Exclusive Distribution

A distribution strategy where a supplier grants exclusive rights to a single wholesaler or retailer to sell its products in a specific territory.

Intensive Distribution

Intensive distribution is a strategy where a company makes its product available through as many outlets as possible to maximize coverage and product availability.