Kaysia participates in a SIMPLE plan provided by her employer. In 2015, she contributes 6% of her $40,000 salary, and her employer contributes 3% to the plan. What amount of the contributions will be vested in her account at the end of 2015?

Question

Quizplus · Accepted Answer

In a SIMPLE plan, employee contributions are always 100% vested. Kaysia contributes 6% of $40,000, which is $2,400, and her employer contributes 3% of $40,000, which is $1,200. The total vested amount is $2,400 + $1,200 = $3,600.

Kaysia Participates in a SIMPLE Plan Provided by Her Employer