Which of the Following Is True Regarding an SEP

question 112

Multiple Choice

Which of the following is true regarding an SEP?

• A)Cannot discriminate in favor of highly compensated employees.
• B)The plan must cover all employees who have reached the age of 18,who have worked for the employer for at least two of the preceding five years,and who received at least $600 in compensation.
• C)Deductible contributions cannot exceed the lower of 15% of the employee's compensation or $53,000.
• D)Self-employed individuals cannot create and contribute to an SEP.

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Definitions:

Huntington's Disease

A fatal genetic disorder that causes the progressive breakdown of nerve cells in the brain, affecting an individual’s functional abilities.

Parkinson's Disease

A degenerative disorder of the central nervous system mainly affecting the motor system, leading to tremors, stiffness, and slowing of movement.

Lewy Body Disease

A type of neurocognitive disorder that involves a buildup of clumps of protein deposits, called Lewy bodies, within many neurons. In addition to progressive cognitive problems, this disease features significant movement difficulties.

Unipolar Depression

A major depressive disorder characterized by persistent sadness and lack of interest in activities, without the manic episodes found in bipolar disorder.