Question

Which of the following statements is incorrect regarding the SEP IRA?

Employer contributions must be nondiscriminatory

Both employers and employees can contribute to the plan.

Contributions made by the due date of the tax return can be treated as made on the last day of the related tax year.

The maximum contribution for 2019 is $56,000.

Answer 1

A simplified employee pension (SEP) IRA is a savings plan where employers contribute tax deductible amount on behalf of eligible employees but employees are not eligible to contribute to the scheme.

Thus

Both employers and employees can contribute to the plan is false.