SIE Exam Question 885: Answer and Explanation

Question: 885

All but which of the following are characteristics of a SEP IRA?

• A. It is entirely owned by the participant.
• B. Plan loans are permitted.
• C. The contribution deadline to a SEP IRA is April 15, including extensions.
• D. The account balance is 100% vested at all times.

Correct Answer: B

Explanation:

A SEP IRA is entirely owned by the participant, and the account balance is 100% vested at all times. The contribution deadline to a SEP IRA is April 15, including extensions. Plan loans are not permitted from a SEP IRA.