New York State Life Insurance Exam Questions Practice Question
Which kind of retirement plan can a 1,500-employee for-profit corporation establish?
Correct Answer: A
Rationale: A 401(k) plan is designed for for-profit corporations, making it suitable for a 1,500-employee company. This plan allows employees to save for retirement through payroll deductions, with potential employer matching contributions.
A 403(b) plan is intended for non-profit organizations and certain public sector employees, thus not applicable here. A Keogh plan is specifically for self-employed individuals and unincorporated businesses, which excludes larger corporations. A Simplified Employee Pension Plan (SEP) is typically used by small businesses or self-employed individuals, making it less appropriate for a large corporation like the one described.
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