Author Question: Which of the following statements about SIMPLE retirement plans is true? A) They are limited to ... (Read 49 times)

dalyningkenk · **on:** Jul 11, 2018

Which of the following statements about SIMPLE retirement plans is true?

A) They are limited to employers with 100 or fewer eligible employees and who do not maintain another qualified plan.
B) Employees are not permitted to make SIMPLE plan contributions.
C) Employers are subject to more stringent nondiscrimination rules than those that apply to most qualified plans.
D) Employer contributions are fully taxable in the year of the contribution, but qualified distributions are received tax-free.

Question 2

Which of the following statements concerning retirement plans for the self-employed is true?

I. They can be used by owners of incorporated businesses only.
II. With certain exceptions, the same rules that apply to qualified corporate plans apply to retirement plans for the self-employed.
A) I only
B) II only
C) both I and II
D) neither I nor II