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Retirement Intermediate: Special Types of Individual Retirement Accounts

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1.
Employers are required to contribute to their employees' SEP-IRAs.
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False. Employer contributions are voluntary.
2.
SIMPLE IRAs may be funded by _______.
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Both employer contributions and employee salary reduction contributions. However, an employee may elect not to make a contribution.
3.
Contributions that employers make to employees' SIMPLE IRAs are called ________ contributions.
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Matching. To an extent, these must match the contributions made by employees.
4.
Employees whose retirement benefits are covered by union contracts may not participate in SIMPLE or SEP-IRAs.
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True. This rule prevents double retirement coverage.
5.
An employer may exclude from a SIMPLE IRA any employees whose retirement benefits are covered by a union contract.
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True. Employees whose retirement benefits are covered by a union contract are excluded from participating in a SIMPLE IRA.