Which of the following is a critical difference between SEP- individual retirement accounts and other individual retirement accounts?
A)Employee contribution is very high in SEP-IRAs.
B)The limits of SEP-IRAs are substantially larger than other IRAs.
C)Employee contribution is taxable in SEP-IRAs.
D)Annual deduction limits are not applicable for SEP-IRAs.
E)Only a narrow cross section of employees is included in the SEP.

Question

Quizplus · Accepted Answer

The critical difference between SEP-IRAs (Simplified Employee Pension Individual Retirement Accounts) and other IRAs (Individual Retirement Accounts) is that SEP-IRAs have substantially larger contribution limits. This allows for significantly more money to be contributed annually compared to traditional or Roth IRAs.

Which of the Following Is a Critical Difference Between SEP-