In 2015, the Maximum Annual Contribution to a SIMPLE Pension

question 122

Multiple Choice

In 2015, the maximum annual contribution to a SIMPLE pension plan for an employee under the age of 50 is:

• A) $5,500
• B) $12,500
• C) $18,000
• D)$53,000

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Definitions:

Annual Payments

Regular payments made once a year, often used in the context of loans, leases, or annuities.

Certificate of Deposit

A savings certificate with a fixed maturity date and fixed interest rate, issued by banks to individuals desiring to save money for a fixed period.

Compounded Annually

The process of calculating interest and adding it to the principal sum of a deposit or loan once per year.

Interest Rate

The rate at which interest is paid by borrowers for the use of money that they borrow from lenders.