Which of the following are true of contributions to a SIMPLE IRA?

(1) employee salary reduction contributions are subject to FICA

(2) eligible employees may make catch-up contributions of $5,000 in 2011

(3) direct employer contributions are not subject to FICA

(4) employers are required to make a contribution equal to 5% of compensation for all eligible employees

a. (1) and (3) only

b. (1) (2) and (3) only

c. (2) (3) and (4) only

d. (1) (2) (3) and (4)