A Company That Maintains a SIMPLE-401(k)has the Option of Funding

question 35

Multiple Choice

A company that maintains a SIMPLE-401(k) has the option of funding the plan by
I.Contributing 2% of an employee's salary up to a maximum of $5,300.
II.Match the employee's contribution up to a maximum of 3 percent of the employee's compensation with a maximum contribution of $12,000.
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• A)Only I is correct.
• B)Only II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Collusion

An agreement between parties, often secretly, to limit open competition by deceiving or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair market advantage.

Fraudulent

Deliberately deceitful behavior intended to gain an unfair or unlawful advantage, which can encompass a wide range of activities including false representation and falsification of documents.

Deceitful

Characterized by dishonesty or manipulation to obscure the truth for personal or professional gain.

Conflicts

Situations where perceived or actual incompatible interests, beliefs, or actions lead to opposition or discord between individuals or groups.