Merrill Is a Participant in a SIMPLE § 401(k)plan,and He

question 19

Multiple Choice

Merrill is a participant in a SIMPLE § 401(k) plan,and he elects to contribute 4% of his $40,000 compensation to the account,while his employer contributes 3%.What amount will vest immediately,if any?

• A)$0
• B)$1,200
• C)$1,600
• D)$2,800
• E)None of these

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Definitions:

Operating Expense

Expenses incurred during the process of running a business that are not directly tied to producing goods or services.

Yield

The return on an investment over a particular period, expressed as a percentage, reflecting the income earned relative to the initial investment.

Available Seats

The number of seats offered by a service provider, such as an airline or theater, that are not yet sold or reserved.