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

question 61

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:

Consumers

Individuals or households that use goods and services generated within the economy.

Sellers

Individuals or entities that offer products, goods, or services for sale to buyers.

Tax Increase

The act of raising the amount of money government collects from taxes, often to fund public services or reduce budget deficits.

Price Ceiling

A price ceiling is a regulatory limit on the price that can be charged for a commodity in the market, intended to protect consumers from excessively high prices.