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

question 69

Multiple Choice

In general, which of the following statements regarding self-employed retirement accounts is true?

• A) 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) SEP IRAs have higher contribution limits than individual 401(k)s no matter the age of the contributing taxpayer.
• C) Individual 401(k)s have higher contribution limits than SEP IRAs.
• D) None of these. Both SEP IRAs and individual 401(k)s have exactly the same annual contribution limits.

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Definitions:

Buyer's Damages

Legal compensation sought by a purchaser when a seller fails to fulfill the terms of a contract, such as defects in goods or delays in delivery.

Defective Goods

Products that fail to meet quality or performance standards, often leading to consumer dissatisfaction or safety concerns.

Industry Value

The total market worth of a specific sector or industry, often calculated by combining the value of all involved companies and sales.

UCC Statute of Limitations

The time limit established by the Uniform Commercial Code within which a lawsuit must be filed to resolve various types of disputes, notably in commercial transactions.