Under a 401(k)plan,what Is Compared to Determine If the Plan

question 7

Multiple Choice

Under a 401(k) plan,what is compared to determine if the plan unfairly discriminates in favor of highly compensated employees?

• A)the average percentage of salary made available to the highly compensated to defer is compared to the average percentage of salary made available to other eligible employees to defer
• B)the ratio of eligible highly compensated employees is compared to the ratio of eligible other employees
• C)the average percentage of salary deferred by the highly compensated is compared to the average percentage of salary deferred by other eligible employees
• D)the percentage of highly compensated employees over age 50 who participate is compared to the percentage of all other employees who participate

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Definitions:

American Law

The body of legal statutes, regulations, and principles that govern the United States, encompassing federal, state, and local laws.

English Common Law

A legal system originating in England and based on court decisions, customs, and usages rather than on codified written laws.

French Philosophy

A branch of philosophy originating from France that encompasses a wide range of thinkers and philosophical traditions, known for contributing significantly to contemporary political, social, and ethical thought.

Alexis de Tocqueville

A 19th-century French political thinker and historian best known for his works "Democracy in America," examining the democratic system of the United States.