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

question 147

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, SEP IRAs have higher contribution limits than individual 401(k)s no matter the age of the contributing taxpayer.
• C)In general, individual 401(k)s have higher contribution limits than SEP IRAs.
• D)None of the choices are true. In general, both SEP IRAs and individual 401(k)s have exactly the same annual contribution limits.

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Definitions:

Two-speed

Describes a mechanism, such as a gearbox, with two operating speeds, allowing for a shift in performance or efficiency depending on the requirement.

Kingpin

A critical component in vehicle steering mechanisms or in the coupling between a trailer and a tractor, around which steering or pivoting occurs.

Steering Axles

Axles equipped with mechanisms to alter the direction of a vehicle's wheels, facilitating steering.

Tandem Drive Axles

A pair of drive axles in a vehicle, typically trucks or buses, that work in conjunction to distribute the weight and increase the vehicle's traction.