Which of the Following Is a True Statement Regarding Saving

question 26

Multiple Choice

Which of the following is a true statement regarding saving for retirement?

• A) In a given year, a taxpayer may participate in either an employer-sponsored defined benefit plan or defined contribution plan but not both.
• B) In a given year, a taxpayer who receives salary as an employee and also receives self-employment income may participate in an employer-sponsored defined contribution plan or may contribute to a self-employed retirement account but not both.
• C) In a given year, a taxpayer may contribute to an IRA (either traditional or Roth) or contribute to a self-employment retirement account but not both.
• D) None of these is a true statement

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Definitions:

Duties Completed

Refers to responsibilities or tasks that have been successfully fulfilled or accomplished.

Contractual Rights

Legal entitlements inherent in a contract that allow parties to perform or enforce the terms agreed upon.

Assignment Situations

Circumstances in which rights or duties under a contract are transferred from one party to another.

Assignability

The capability of a contract or right to be transferred from one party to another.