Rock, age 28, terminated employment with Stone Brothers on April 30 this year (2020). Before terminating employment, Rock had earned $25,000 of compensation and deferred $6,000 to the SIMPLE sponsored by Stone Brothers. If during the remaining months of 2020 Rock earns $40,000 from his new employer who sponsors a 401(k) plan, Rock may defer up to $19,500 of the $40,000 of compensation to their 401(k) plan.

True or false