A Company That Maintains a SIMPLE-401(k)has the Option of Funding

question 74

Multiple Choice

A company that maintains a SIMPLE-401(k) has the option of funding the plan by
I.Contributing 2% of an employee's salary up to a maximum of $5,100.
II.Match the employee's contribution up to a maximum of 3 percent of the employee's compensation with a maximum contribution of $12,000.

• A)Only I is correct.
• B)Only II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

Distinguish between executive and independent agencies and their classifications.

Understand the process of rule making, including informal and formal rule-making procedures.

Identify how administrative law judges' decisions are dealt with and the appeal process.

Understand the concept of enabling legislation and its significance in the context of administrative agencies.

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Definitions:

Limestone

A sedimentary rock composed mainly of calcium carbonate (CaCO3), often formed from the remains of marine organisms and used extensively in building and industry.

Calcium Carbonate

A chemical compound with the formula CaCO3, found in rocks as the minerals calcite and aragonite and is the main component of pearls, marine organisms' shells, and snail shells.

Precipitation

The process by which water vapor in the atmosphere condenses into droplets or ice crystals that fall to the Earth's surface, contributing to the hydrological cycle.

Evaporation

The process by which water is transformed from a liquid to a gas or vapor state, often contributing to the hydrologic cycle by removing moisture from bodies of water, soil, and other surfaces.