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Ross Corporation is a 3-year old company with a relatively young staff of 12 employees, of whom two are highly compensated. The company wants to establish a Section 401(k) plan. Which of the following will not be permitted as a plan provision?

A. the employer will make both formula contributions and discretionary matching contributions
B. the plan makes profit-sharing contributions
C. the plan permits employees to elect retroactive salary reductions for the entire current year at any time before the plan year ends
D. the plan puts a limit on the annual employee salary reduction

 

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