New York State Life Insurance Exam Questions Practice Question
Which of the following qualified plans is an employer-sponsored IRA?
Correct Answer: A
Rationale: A Simple Employee Pension Plan (SEP) qualifies as an employer-sponsored IRA, allowing employers to contribute to their employees' retirement savings while offering tax benefits.
Option B, the Key-employee plan, is not an IRA but rather a type of non-qualified plan designed for select employees, lacking the tax advantages of IRAs.
Option C, Tax-Sheltered Annuities, typically refer to 403(b) plans for certain employees and do not fall under the IRA category.
Option D, Deferred Compensation, is also a non-qualified plan that defers income rather than being an IRA, making it unsuitable as an employer-sponsored retirement account.
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