Which of the following statements about SIMPLE retirement plans is tru

Which of the following statements about SIMPLE retirement plans is true?

A) They are limited to employers with 100 or fewer eligible employees and who do not maintain another qualified plan.
B) Employees are not permitted to make SIMPLE plan contributions.
C) Employers are subject to more stringent nondiscrimination rules than those that apply to most qualified plans.
D) Employer contributions are fully taxable in the year of the contribution, but qualified distributions are received tax-free.

ANSWER

Answer: A