ExitVCEDumpFINRA-SERIES-6FINRA Investment Company and Variable Contracts Products Representative (IR)
Question 16 of 49
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Q16Single choice
One difference between a SEP-IRA and a SIMPLE IRA is that:
A
Only employers can make contributions to a SEP-IRA; both employees and employers can contribute to a SIMPLE IRA.
B
The contributions made to a SEP-IRA are tax deductible, which is not the case with a SIMPLE IRA.
C
The SEP-IRA has a higher contribution limit than that allowed by a traditional IRA or a Roth IRA, but the SIMPLE IRA contribution limits are the same as that of a traditional IRA or a Roth IRA.
D
There is no difference; both names refer to the same type of IRA that is available to a small business or a self-employed individual.