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Retirement Intermediate: Special Types of Individual Retirement Accounts

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1.
All of the following are IRS maximum guidelines for SEP-IRA eligibility except that _______.
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Employees must receive $5,000 or more in compensation for that tax year. The rule is, the employees must receive $800 or more.
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.
To be eligible to participate in a company's SEP-IRA, you must be at least how old?
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21. You must be at least 21, per IRS guidelines.
4.
Employers are required to contribute to their employees' SEP-IRAs.
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False. Employer contributions are voluntary.
5.
Which of the following is required of employees who want to participate in a SIMPLE IRA plan?
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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.