Which of the Following Statements Regarding Self-Employed Retirement Accounts Is

question 101

Multiple Choice

Which of the following statements regarding self-employed retirement accounts is true?

• A) A self-employed taxpayer who has hired employees may set up either a SEP IRA or an individual 401(k).
• B) A self-employed taxpayer who has hired employees may not set up a SEP IRA.
• C) A self-employed taxpayer who has hired employees may not set up an individual 401(k).
• D) All of the choices are false.

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Definitions:

Retail Price

The total cost at which a product or service is sold to the consumer, including any markup for profit.

Olive Tree

A fruit-bearing tree native to the Mediterranean region, valued for its olives and olive oil.

Dollar Markup

The difference between the cost of an item and its selling price expressed in dollars, indicating the gross profit on the item.

Selling Price

The final amount at which a product or service is sold to the consumer.