SEP IRA

Question: Another question SIMPLE IRA question. Which of the following statements is/ are correct?

which of the following is/ are correct regarding SIMPLE plans?
1.A SIMPLE plan does not require annual testing.
2.A SIMPLE IRA must follow a 3 yr cliff vesting schedule if the plan is top-heavy
3.A 25% early withdrawal penalty may apply to distributions taken within the first two years of participation in a SIMPLE plan.
4.The maximum elective deferral Contribution to a SIMPLE 401K plan is $15.5k for 07 and $20.5K for o7 for an employee who has attained the age of 50.
a.3 only
b.1 and 3 only
c.1,2, and 3
d.2,3,and 4

thank you very much =)

Answer: visit this link for a trusted answer

http://www.missouribusiness.net/irs/sections/section11/simplefaqs.htm#15

Money Management & Personal Finance : How to Determine a SIMPLE IRA Contribution Amount