Which of the Following Statements Is Incorrect Regarding the SEP

question 27

Multiple Choice

Which of the following statements is incorrect regarding the SEP IRA?

• A)Both employers and employees can contribute to the plan.
• B)Contributions made by the due date of the tax return can be treated as made on the last day of the related tax year.
• C)Employer contributions must be nondiscriminatory.
• D)The maximum contribution for 2014 is $52,000.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was placed in service, reflecting its loss of value over time.

Property Plant

Property, Plant, and Equipment (PP&E) are fixed assets including buildings, machinery, and equipment that are owned and used by a company for operations and not for immediate sale.

Corporate Office

The central or main office of a company where key administrative and executive activities occur.

Long-term Investments

Investments made to be held for more than a single fiscal year, which might include bonds, stocks, or real estate.