Which of the Following Plans Automatically Satisfies the Nondiscrimination Tests

question 4

Multiple Choice

Which of the following plans automatically satisfies the nondiscrimination tests by mandating an employer contribution?

• A)Employer 401(k)plan.
• B)Mandate 401(k)plan.
• C)Safe Harbor Section (401(k)plan.
• D)Section 401(k)plan.

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Definitions:

Mead

A drink made by the fermentation of honey and water, often enhanced with the addition of fruits, spices, grains, or hops to create an alcoholic beverage.

Price

The financial expenditure expected, essential, or relinquished in payment for something.

Indirect Utility Function

A concept in economics that represents the maximum utility a consumer can achieve with a given income and set prices for goods and services.

Income

Cash inflow, customarily obtained at regular periods, as compensation for work or from investment outcomes.