Which of the Following Best Describes a SEP

question 40

Multiple Choice

Which of the following best describes a SEP?

• A) The employer or employee establishes and employer contributes to a tax-favorable IRA.
• B) The employer establishes a tax-favorable IRA for the employee.
• C) The employee rolls over an existing IRA to his or her employer and the current employer continues contributions.
• D) The employer creates a taxable IRA to which the employee must make a defined contribution.