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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.
Contributions that employers make to employees' SIMPLE IRAs are called ________ contributions.
Matching. To an extent, these must match the contributions made by employees.
3.
To be eligible to participate in a company's SEP-IRA, you must be at least how old?
21. You must be at least 21, per IRS guidelines.
4.
SIMPLE IRAs are sponsored by whom?
Employers. The SIMPLE IRA is an employer-sponsored retirement plan.
5.
SIMPLE IRAs may be funded by _______.
Both employer contributions and employee salary reduction contributions. However, an employee may elect not to make a contribution.