Taylor, age 25, works for Swim America. Swim America adopted a SIMPLE plan six months ago. Taylor made an elective deferral contribution to the plan of $8,000, and Swim America made a matching contribution of $2,400. Which of the following statements is/are correct?

1. Taylor can withdraw his entire account balance without terminating employment.

2. Taylor can roll his SIMPLE IRA into his Traditional IRA.

3. Taylor will be subject to ordinary income taxes on withdrawals from the SIMPLE.

4. Taylor may be subject to a 25% early withdrawal penalty on amounts withdrawn from the SIMPLE.

A)1 and 2. B)1 and 3. C)2, 3, and 4. D)1, 3, and 4.