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

question 30

Multiple Choice

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

• A)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)SEP IRAs have higher contribution limits than individual 401(k) s no matter the age of the contributing taxpayer.
• C)Individual 401(k) s have higher contribution limits than SEP IRAs.
• D)None of these.Both SEP IRAs and individual 401(k) s have exactly the same annual contribution limits.See discussion in the text.