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1.
Which of the following is required of employees who want to participate in a SIMPLE IRA plan?
They received at least $5,000 in compensation from their employers during any two years before the present year. The earnings requirement, as you can see, is fairly easy.
2.
Employees whose retirement benefits are covered by union contracts may not participate in SIMPLE or SEP-IRAs.
True. This rule prevents double retirement coverage.
3.
All of the following are IRS maximum guidelines for SEP-IRA eligibility except that _______.
Employees must receive $5,000 or more in compensation for that tax year. The rule is, the employees must receive $800 or more.
4.
An employer may exclude from a SIMPLE IRA any employees whose retirement benefits are covered by a union contract.
True. Employees whose retirement benefits are covered by a union contract are excluded from participating in a SIMPLE IRA.
5.
SIMPLE IRAs are sponsored by whom?
Employers. The SIMPLE IRA is an employer-sponsored retirement plan.