Which of the following statements concerning Simplified Employee Pension (SEP) -

Question

Which of the following statements concerning Simplified Employee Pension (SEP) - IRA plans is correct?

(a) The limit on employer contributions that can be excluded from an employee's income is the lesser of 25% of compensation or $53,000 in 2015.
(b) A minimum contribution must be made annually on behalf of all non-key employees who participate in a top-heavy SEP-IRA.
(c) An employee participating in a SEP may treat the SEP as an IRA but he or she can only make after-tax contributions to the IRA
(d) Either cliff vesting or graded vesting may be used.

Explanation / Answer

a. The limit on employer contributions that can be excluded from an employees income is the lesser of 25% of compensation or %53000 in 2015.

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