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

question 74

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 $5,100.
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.

• A)Only I is correct.
• B)Only II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.