If an Employer's Contribution to a SEP IRA Is Less

question 12

True/False

If an employer's contribution to a SEP IRA is less than $50,000 in 2012 (or 25% of the employee's earned income,if less),the employee can contribute the difference.

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Definitions:

Temporary Account

An account used to accumulate transaction information during a single accounting period, which is then transferred to permanent accounts.

Withdrawals

Amounts of money taken out from a business by the owner(s) for personal use, not considered a business expense.

Fees Earned

Revenue generated from services provided or work completed during a specific period.

Adjusted Trial Balance

A final tally of all financial accounts, after adjustments, used to prepare financial statements, ensuring the total debits equal total credits.