Which of the Following Statements Concerning Individual 401(k)s Is False

question 30

Multiple Choice

Which of the following statements concerning individual 401(k) s is false?

• A) In general, individual 401(k)s have higher administrative costs than SEP IRAs.
• B) Employees cannot participate in individual 401(k)s.
• C) Individual 401(k)s are available only to self-employed taxpayers with 100 or fewer employees.
• D) Individual 401(k)s have contribution limitations.

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Definitions:

Break-Even Level Of Sales

The amount of revenue from sales that is exactly sufficient to cover both fixed and variable costs, resulting in zero net profit or loss.

Variable Cost

A cost that varies directly with the level of production or sales volume.

Net 30 Policy

A payment term indicating that payment is due in full 30 days after the invoice date.