Which of the following statements is (are) true with respect to profit

Which of the following statements is (are) true with respect to profit-sharing plans?

I. There is no limit on the amount that an employer can contribute annually to an employee’s account under a profit sharing plan.
II. Profit sharing plans offer greater funding flexibility for employers than under other qualified plans.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: B