Which of the Following Statements Is Correct

question 21

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 or $53,000 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 $45,000.
• D)The contribution limits for SEPs are a maximum of $18,000 ($24,000 for taxpayers 50 or older).

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Definitions:

Change Competency

The capability to adapt to, manage, and implement changes within an organization or environment effectively.

Teams Competency

The collective skills, knowledge, and abilities that enable a group to perform and accomplish objectives effectively.

Accountable

Being responsible or answerable for one's actions, ensuring transparency and reliability in personal and professional conduct.

Diversity Competency

Involves the knowledge, skills, and abilities to value, respect, and leverage the differences among individuals to contribute positively to goals and objectives.