In General, Which of the Following Statements Regarding Self-Employed Retirement

question 71

Multiple Choice

In general, which of the following statements regarding self-employed retirement accounts is true?

• A) In general, SEP IRAs have higher contribution limits than individual 401(k)s if the contributing taxpayer is at least 50 years of age at year end.
• B) In general, Individual 401(k)s have higher contribution limits than SEP IRAs.
• C) In general, SEP IRAs have higher contribution limits than individual 401(k)s no matter the age of the contributing taxpayer.
• D) None of the choices are true. In general, both SEP IRAs and individual 401(k)s have exactly the same annual contribution limits.

---

Definitions:

Exercise

Physical activities that are planned, structured, and repetitive for the purpose of conditioning any part of the body, improving health, and maintaining fitness.

Strength

The quality or state of being physically strong.

Flexibility

The quality of bending easily without breaking, often referring to the range of motion available in a muscle or joint.

Swing-Through Gait

A type of gait where an individual uses crutches to lift and move both legs simultaneously forward through the crutches for mobility.