$3$

Multiple Choice $2\mathrm{.}5$ points

Seth, who is about $55$ years old, runs a local Po$-$Boy shop in New Orleans. He has several high school kids who work for him part time. Seth's mom, Robin, helps make the best meatballs in the universe and works there full time. Which of the following plans makes the most sense for Seth if he earns about $$120,000$ and does not want to spend too much on a retirement plan?

Money purchase plan

Tandem plan

Cash balance plan

$401(k)/$profit sharing plan

$4$

Multiple Choice

$2\mathrm{.}5$ points

The Actual Deferral Percentage $($ADP$)$ test is one of the tests that some qualified plans must comply with.