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

Which of the following statements is (are) true with respect to SIMPLE retirement plans?

I. Only large employers can start a SIMPLE plan, provided the employer does not maintain another qualified plan.
II. SIMPLE plans are exempt from most nondiscrimination and administrative rules that apply to qualified plans.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: B