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Which of the Following Is True Regarding an SEP

Question 46

Multiple Choice

Which of the following is true regarding an SEP?


A) Cannot discriminate in favor of highly compensated employees.
B) Deductible contributions cannot exceed the lower of 15% of the employee's compensation or $54,000.
C) Self-employed individuals cannot create and contribute to an SEP.
D) The plan must cover all employees who have reached the age of 18,who have worked for the employer for at least two of the preceding five years,and who received at least $600 in compensation.

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