Which of the Following Statements Is Correct

question 2

Multiple Choice

Which of the following statements is correct?

• A)Contributions to SEP plans by self-employed taxpayers are generally limited to the lesser of 15 percent of their net earned income (before the SEP deduction) or $45,000.
• B)The contribution limits for SEPs are the lesser of 25 percent of net self-employment income after the deduction for the contribution to the SEP or $55,000 for a self-employed taxpayer.
• C)Employees may elect to make annual contributions to 401(k) plans up to the lesser of 15 percent of their net earned income (before the 401(k) deduction) or $54,000.
• D)The contribution limits for SEPs are a maximum of $18,500 ($24,500 for taxpayers 50 or older).

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Definitions:

Labor Laws

Regulations and laws that govern the rights and responsibilities of workers, employers, and labor unions to ensure fair employment practices.

Political Factors

Elements related to government actions, policies, and political stability that can influence business operations and decisions.

Acquire Resources

The process of obtaining the necessary materials, finances, and human skills required for the operation of a business or project.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public—by practicing sustainable development.