17. Which kind of retirement plan can a 75-employee for profit corporation establish?
Answer: C
A 75-employee for profit corporation can establish a SIMPLE IRA.
A SIMPLE IRA is specifically designed for small businesses with 100 or fewer employees, making it a suitable option for a 75-employee for profit corporation.
A) Roth IRA.
A Roth IRA is an individual retirement account that individuals can open, rather than a plan established by an employer. Therefore, it is not applicable for a corporation to set up for its employees as a company-sponsored retirement plan.
B) 403(b).
A 403(b) plan is intended for certain tax-exempt organizations and public schools, not for-profit corporations. Since the question specifies a for-profit corporation, this option is not relevant.
C) SIMPLE IRA.
A SIMPLE IRA is designed for small businesses, allowing employers to contribute to their employees' retirement savings. It is specifically tailored for organizations with 100 or fewer employees, making it the appropriate choice for a 75-employee for profit corporation.
D) Keogh.
A Keogh plan is a type of retirement plan for self-employed individuals and their employees, often used by unincorporated businesses. While it can be established by some for-profit entities, it is less common for corporations with a significant number of employees compared to a SIMPLE IRA.
Conclusion
The SIMPLE IRA is the only option that aligns with the needs of a 75-employee for profit corporation, as it is specifically designed for small businesses. Other options, such as the Roth IRA, 403(b), and Keogh plans, do not meet the requirements or contexts relevant to a for-profit corporation with that number of employees. Thus, the SIMPLE IRA stands out as the most appropriate retirement plan option.