Safe harbor Section 401(K) plans are appropriate for employers who

1. want to encourage plan participation among highly compensated employees.

2. want a plan that must be tested annually for coverage requirements

3. want to provide for a high level of employee elective deferrals without annual discrimination testing.

4. have highly compensated employees whose elective deferrals would be limited in a traditional Section 401(K) plan because of ADP testing.

A. I,II,III, and IV

B. III and IV

C. I and II

D. I, II, and III