CDIP Practice Questions

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NEW QUESTION: 1
One difference between a SEP-IRA and a SIMPLE IRA is that:
A. The contributions made to a SEP-IRA are tax deductible, which is not the case with a SIMPLE IRA.
B. There is no difference; both names refer to the same type of IRA that is available to a small business or
a self-employed individual.
C. The SEP-IRA has a higher contribution limit than that allowed by a traditional IRA or a Roth IRA, but
the SIMPLE IRA contribution limits are the same as that of a traditional IRA or a Roth IRA.
D. Only employers can make contributions to a SEP-IRA; both employees and employers can contribute
to a SIMPLE IRA.
Answer: D
Explanation:
The main difference between a SEP-IRA and a SIMPLE IRA is that only employers can
contribute to a SEP-IRA whereas both employees and employers can contribute to a SIMPLE IRA. In fact,
employers are required to contribute to a SIMPLE IRA on the employee's behalf, even if the employee
chooses to make no contributions. The contributions to both plans are tax deductible and both plans have
higher contribution limits than those allowed by the traditional IRA and Roth IRA plans.

NEW QUESTION: 2
U1980s are interconnected with the carrier PSTN through the PRA protocol.
Which of the following boards enables the interconnection?
A. DTU
B. MTU
C. SMCU
D. OSU
Answer: A

NEW QUESTION: 3
Which two control protocols use the native VLAN 1 by default?
A. STP
B. VTP
C. CDP
D. LACP
E. NTP
Answer: B,C