Napoleon Enterprises sponsors a SIMPLE 401(k) for its employees. Under the plan, the company matches employee contributions up to 3% of compensation. Which of the following statements about Napoleon Enterprises' SIMPLE 401(k) is CORRECT?

Question options: Napoleon Enterprises can match as little as 1% of compensation for 2 out of 5 years

Napoleon Enterprises' contributions must be vested using either a 3-year cliff or 2-to-6-year vesting schedule

Withdrawals made within 2 years of initial participation are subject to a 25% premature distribution penalty tax

Employees cannot make after-tax contributions to the plan