21. Which of the following retirement plans would permit an year to still make a fully deductible traditional IRA contribution a) 4010k) b) 403(b) c) SEP-IRA d) 457b) 22. W hich of the following statements describe characteristics of an ERISA 403() plan ) Salary reduction contributions are not reported as W-2 income and are not subject to FICA tax 2) The maximum elective deferral limit in 2018 is $18,500 for a newly hired employee under the age of 50. 3) Employer contributions are tax-deductible. 4) Loans and "catch- up" contributions may be permitted under the terms of the plan. a) (4) only b) (1) and (3) only c) (2) and (4) only d) (1),(2), and (3) only 23. Donna owns Rapid Deliveries, a one-member LLC, that sponsors a Simplified Employee Pension (SEP) The LLC will make a 25% of compensation contribution for each ofits employees, including Donna, for the year. If Donna's net self-employment income for the year is $175,0 0 and her total self-employment tax is $16,000, what is the maximum deductible contribution to the SEP on behalf of Donna? a) $31,800 b) $33,400 c) $39,750 d) $41,750 4. Which of the following statements, if any, with respect to a SEP is correct? 1) The maximum contribution to a SEP is the lesser of 100% of compensation or SSS ,000 for the year 2018. 2) A SEP is most appropriate for a business employing a large number of part-time employees. 3) Employer contributions to a SEP may be made subject to a vesting schedule. 4) A SEP is a type of 403(b) plan since available to Section 501(c) (3) employers a) (1) only b) (1) and (3) only c) 2) and (4) only d) None of the statements are correct 21. Which of the following retirement plans would permit an year to still make a fully deductible traditional IRA contribution a) 4010k) b) 403(b) c) SEP-IRA d) 457b) 22. W hich of the following statements describe characteristics of an ERISA 403() plan ) Salary reduction contributions are not reported as W-2 income and are not subject to FICA tax 2) The maximum elective deferral limit in 2018 is $18,500 for a newly hired employee under the age of 50. 3) Employer contributions are tax-deductible. 4) Loans and "catch- up" contributions may be permitted under the terms of the plan. a) (4) only b) (1) and (3) only c) (2) and (4) only d) (1),(2), and (3) only 23. Donna owns Rapid Deliveries, a one-member LLC, that sponsors a Simplified Employee Pension (SEP) The LLC will make a 25% of compensation contribution for each ofits employees, including Donna, for the year. If Donna's net self-employment income for the year is $175,0 0 and her total self-employment tax is $16,000, what is the maximum deductible contribution to the SEP on behalf of Donna? a) $31,800 b) $33,400 c) $39,750 d) $41,750 4. Which of the following statements, if any, with respect to a SEP is correct? 1) The maximum contribution to a SEP is the lesser of 100% of compensation or SSS ,000 for the year 2018. 2) A SEP is most appropriate for a business employing a large number of part-time employees. 3) Employer contributions to a SEP may be made subject to a vesting schedule. 4) A SEP is a type of 403(b) plan since available to Section 501(c) (3) employers a) (1) only b) (1) and (3) only c) 2) and (4) only d) None of the statements are correct
