Under one type of retirement plan for small businesses, the employer c

Under one type of retirement plan for small businesses, the employer contributes to an IRA established for each eligible employee.

Under this type of plan, the contribution limits are significantly higher than they are for traditional IRAs and Roth IRAs. This type of plan, which requires little paperwork, is called a
A) simplified employee pension (SEP) plan.
B) defined benefit plan.
C) Keogh plan.
D) 403(b) plan.

ANSWER

Answer: A