Which of the following is not true of Simplified Employee Plans?(Select the best answer below.)

A.

They enable self-employed individuals to contribute part of their income to a retirement account.

B.

The contributions are not taxed until it is withdrawn from the retirement account at the time of retirement.

C.

They are government-sponsored retirement plans.

D.

They allow for a maximum annual amount of 25% of net income up to a maximum of $50,000.