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Finance

All the following statements concerning contributions to a 401(k) plan are correct EXCEPT

A. A 401(k) plan can include employee after-tax contributions in addition to employee pre-tax salary deferrals.

B. A 401(k) plan can include a matching contribution feature in which the plan sponsor agrees to match employee salary deferrals to a certain extent.

C. If a plan has a profit-sharing feature; contributions are made only for eligible participants who make salary deferral contributions.

D. When a plan has more than just salary deferrals, it must have separate bookkeeping accounts for each type of contribution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9215436

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