Of the tax-favored retirement plans for the self-employed and small business employee,one is limited to $54,000 of annual contributions per person.It is the ________ plan.

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Quizplus · Accepted Answer

The SEP-IRA plan limits annual contributions to $54,000 per person, making it the correct option based on the given information. Keogh plans, while also tax-favored, have higher contribution limits and are typically tailored towards higher-earning self-employed individuals. SIMPLE plans and 401(k) plans have lower contribution limits, with the former capping at $13,500 and the latter at $19,500 (for 2021). Thrift plans are not a common retirement plan option for the self-employed or small business employee.

Of the Tax-Favored Retirement Plans for the Self-Employed and Small