Multiple Choice
Under a 401(k) plan,how is it determined if the plan unfairly discriminates in favor of highly compensated employees?
A) The average dollar amount deferred by highly compensated employees is compared to the average dollar amount deferred by other eligible employees.
B) The ratio of highly compensated employees covered by the plan is compared to the ratio of other employees who are covered.
C) The average percentage of income deferred by highly compensated employees is compared to the average percentage of income deferred by other eligible employees.
D) The percentage of highly compensated employees who do not defer income is compared to the percentage of other employees who do not defer income.
Correct Answer:

Verified
Correct Answer:
Verified
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