A company that maintains a SIMPLE-401k) has the option of funding the plan by I. Contributing 2% of an employee's salary up to a maximum of $5,200. 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.

Question

Quizplus · Accepted Answer

Both statements are correct. The SIMPLE-401(k) plan allows for both employer contributions and employee contributions.

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