Which Statement Is Correct Regarding SIMPLE Retirement Plans

question 52

Multiple Choice

Which statement is correct regarding SIMPLE retirement plans?

• A)SIMPLE plans are not subject to nondiscrimination rules.
• B)This plan can only be adopted by employers with 50 or fewer employees.
• C)Only the employer can contribute to the plan.
• D)Employer contributions must vest within three years.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicating improvement in living standards.

Technological Innovations

The implementation of new technologies or the novel application of existing technologies to create new products, processes, or services.

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, a legislation passed in the United States that imposed high tariffs on imported goods to protect American businesses and farmers, which is widely considered to have exacerbated the Great Depression.

Federal Tax Revenue

The income collected by the federal government through various types of taxes to fund national programs and services.