Which is the retirement plan used for a tax-favorable IRA set up by or for the employee, where the employer contributes the funds into the account?

Question

Quizplus · Accepted Answer

SEP (Simplified Employee Pension) is the retirement plan used for a tax-favorable IRA set up by or for the employee, where the employer contributes the funds into the account. ESOP (Employee Stock Ownership Plan) and SIMPLE (Savings Incentive Match Plan for Employees) are different types of retirement plans where the employer contributes funds, but they work differently than SEP plans. Therefore, the best choice is D – SEP.

Which Is the Retirement Plan Used for a Tax-Favorable IRA