Which of the following statements regarding Safe Harbor 401(k) Plans is CORRECT?

Which of the following statements regarding Safe Harbor 401(k) Plans is CORRECT?



A) The penalty for early withdrawal is 25%.

B) Employees must be 25 years old to be eligible participants.

C) Employers may deduct up to 25% of their contributions to the Plan.

D) Contributions are included in employee taxable income.



Answer: Employers may deduct up to 25% of their contributions to the Plan.

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