SEPs and SIMPLEs are tax advantaged retirement plans that are less complex than qualified plans and easier to implement. Which of the following statements is (are) true regarding SEPs and SIMPLEs?

1. For an employee with a salary of $30,000, more money can be contributed (from both employee and employer) to a SEP than a SIMPLE.

2. The vesting and distribution rules for both plans are almost identical.

3. Both plans have the same coverage and participation rules.

A. 2 only

B. 1 and 2

C. 2 and 3

D. 1,2, and 3