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:

Social Mediation

Human interaction that expands and advances understanding, often through words that one person uses to explain something to another.

Zone of Proximal Development

A concept developed by Vygotsky, referring to the difference between what a learner can achieve independently and what they can achieve with guidance and encouragement from a skilled partner.

Bidirectional Function

A relationship or interaction that goes in two directions, often referring to the mutual influence two variables have on each other.

Sociobiological

Related to the study of the biological basis of social behavior in animals and humans.