Merrill Is a Participant in a SIMPLE § 401(k) Plan

question 20

Multiple Choice

Merrill is a participant in a SIMPLE § 401(k) plan, and he elects to contribute 4% of his $40,000 compensation to the account, while his employer contributes 3%. What amount will vest immediately, if any?

• A) $0
• B) $1,200
• C) $1,600
• D) $2,800
• E) None of above

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Definitions:

Ethical and Honest

Behaviors and practices that are morally right, characterized by fairness, transparency, and integrity.

Neutral

Not favoring any side in a conflict, competition, or comparison; impartial.

Debasement

The reduction in quality or value of something, often deliberately for personal gain or advantage.

Incapable

Lacking the ability, means, or competence to accomplish a task or fulfill a role.