Merrill Is a Participant in a SIMPLE § 401(k) Plan

question 20

Multiple Choice

Merrill is a participant in a SIMPLE § 401(k) plan, and he elects to contribute 4% of his $40,000 compensation to the account, while his employer contributes 3%. What amount will vest immediately, if any?

• A) $0
• B) $1,200
• C) $1,600
• D) $2,800
• E) None of above

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Gross Investment

The total amount spent on new capital assets before accounting for depreciation, reflecting an economy's investment levels.

Plant And Equipment

Physical assets of a business that are permanent structures or fixed machinery used in operations.

Inventory

The total amount of goods and materials held in stock by a business, intended for sale or production.