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.

Nebraska Law

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