Under a 401(k)plan,how Is It Determined If the Plan Unfairly

question 28

Multiple Choice

Under a 401(k) plan,how is it determined if the plan unfairly discriminates in favor of highly compensated employees?

• A)The average dollar amount deferred by highly compensated employees is compared to the average dollar amount deferred by other eligible employees.
• B)The ratio of highly compensated employees covered by the plan is compared to the ratio of other employees who are covered.
• C)The average percentage of income deferred by highly compensated employees is compared to the average percentage of income deferred by other eligible employees.
• D)The percentage of highly compensated employees who do not defer income is compared to the percentage of other employees who do not defer income.

---

Definitions:

Literacy Rate

Literacy rate refers to the percentage of people within a population that can read and write at a specified age.

Agriculture

Agriculture is the practice of cultivating soil, producing crops, and raising livestock for food, fiber, and other products.

Developed Countries

Nations with advanced economic systems, high standards of living, robust infrastructures, and comprehensive social welfare systems.

Life Expectancy

The average number of years an individual is expected to live based on current mortality rates.