Which of the Following Is NOT True for SIMPLE IRA

question 95

Multiple Choice

Which of the following is NOT true for SIMPLE IRA plans?

• A) Company matches dollar -for -dollar up to three percent of the employee's salary.
• B) Employee contribution limit is $10,000.
• C) Participants are vested immediately.
• D) Each employee should have received at least $16,000 in employee compensation for each of the past two years.

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Definitions:

Career Civil Servants System

A system employing individuals who work for the government and are selected based on merit rather than appointed or elected, providing continuity within the bureaucracy.

Pendleton Act

An 1883 U.S. federal law that established that positions within the federal government should be awarded based on merit instead of political affiliation.

Spoils System

The spoils system is a political practice where a political party, after winning an election, gives government jobs to its supporters, friends, and relatives as a reward for working toward victory, rather than for their expertise.

Civil Service Protections

Safeguards for government employees that ensure stability, fairness in hiring and firing, and protection from political pressures.