Question

Thomas earns ​$ per year. What retirement plan Thomas should consider under the following​ circumstances? a. He works for a large private firm. b. He works at a university. c. He owns a small firm with employees. a. He works for a large private firm. Which is the best​ selection? ​(Select the best answer​ below.) A. Thomas should consider the Simplified Employee Pension Plan​ (SEP) or the Savings Incentive Match Plan for Employees plan​ (SIMPLE). B. Thomas should consider the​ 401(k) plan. C. Thomas should consider the​ 403(b) plan. b. He works at a university. Which is the best​ selection? ​(Select the best answer​ below.) A. Thomas should consider the Simplified Employee Pension Plan​ (SEP) or the Savings Incentive Match Plan for Employees plan​ (SIMPLE). B. Thomas should consider the​ 401(k) plan. C. Thomas should consider the​ 403(b) plan. c. He owns a small firm with employees. Which is the best​ selection? ​(Select the best answer​ below.) A. Thomas should consider the​ 403(b) plan. B. Thomas should consider the Simplified Employee Pension Plan​ (SEP) or the Savings Incentive Match Plan for Employees plan​ (SIMPLE). C. Thomas should consider the​ 401(k) plan.

Answer 1

Answer: See explanation

Step-by-step explanation:

a. He works for a large private firm.

In this case, he should consider 401(k) plan since he works for a large private​ firm.

b. He works at a university.

In this case, he should considered the 403(b) plans. The 403(b) plan, is the retirement plan for staffs of public schools and this will be suitable for him in thus scenario.

c. He owns a small firm with employees.

In thus case, the SEP and SIMPLE plans should be considered as they're both are offered by small firms​ that has few employees.