In General, Which of the Following Statements Regarding Self-Employed Retirement

question 63

Multiple Choice

In general, which of the following statements regarding self-employed retirement accounts is true?

• A)In general, SEP IRAs have higher contribution limits than individual 401(k)s if the contributing taxpayer is at least 50 years of age at year end.
• B)In general, SEP IRAs have higher contribution limits than individual 401(k)s no matter the age of the contributing taxpayer.
• C)In general, Individual 401(k)s have higher contribution limits than SEP IRAs.
• D)None of these.In general, both SEP IRAs and individual 401(k)s have exactly the same annual contribution limits.

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Definitions:

Endless Chain Referral Method

A marketing strategy where existing customers are encouraged to refer new clients, potentially creating a continuous chain of referrals.

Friends

People known for some time and with whom we share common interests and/or hobbies.

Salespeople

Individuals who sell products or services to customers, focusing on meeting customer needs and closing sales transactions.

Endless Chain

A sales technique where current customers are used to generate leads for future sales by asking for referrals to new prospects.