Under a SEP, an Employee

question 5

Multiple Choice

Under a SEP, an employee

• A) is not allowed to make contributions.
• B) can contribute up to $6,000 per year.
• C) is not taxed until his or her contributions are withdrawn.
• D) can defer taxes with contributions.

---

Definitions:

Expert Power

Power based on a person’s knowledge and experience.

Reward Power

Power based on a person’s ability to satisfy our needs.

High Concern

The state of being extremely interested, anxious, or care significantly about something or someone.

Low Concern

A state of indifference or minimal interest in particular outcomes or subjects.