The Rector Corporation Maintains a SIMPLE-IRA Retirement Plan for Its

question 42

Multiple Choice

The Rector Corporation maintains a SIMPLE-IRA retirement plan for its employees.The company has notified its employees that in 2016 it will fund the SIMPLE-IRA by matching an employee's contribution up to a maximum of 2% of the employee's salary.Avis' salary in 2016 is $240,000 and she contributes $2,800 to the plan.What amount must Avis contribute on Andorra's behalf?

• A)$2,800
• B)$3,000
• C)$3,400
• D)$4,800
• E)$4,900

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Definitions:

Chapter 13

A form of U.S. bankruptcy allowing individuals earning regular income to develop a plan to repay all or part of their debts over time.

Debtor

A party that has a financial obligation or debt to another party, referred to as the creditor, within a commercial transaction.

Automatic Stay

A legal provision that halts proceedings and lawsuits against a debtor immediately upon the filing of a bankruptcy petition.

Chapter 7

A provision of the United States Bankruptcy Code dealing with asset liquidation for the debtor to pay off creditors.