Which of the following statements concerning non-discrimination rules that apply to qualified plans is correct?

1. Compliance can onlybe achieved if the contribution rate for HCEs is no more than twice the rate of contribution for NHCEs.
2. There are only subjective, case-by-case tests for determining non-discrimination compliance.
3. The regulations require that all plans perform a mathematical test each year.
4. A plan can demonstrate compliance by showing that either benefits or contributions are non-discriminatory.