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XYZ has a noncontributory qualified profit sharing plan with 310 employees in total, 180 who are nonexcludable (40 HC and 140 NHC). The plan covers
XYZ has a noncontributory qualified profit sharing plan with 310 employees in total, 180 who are nonexcludable (40 HC and 140 NHC). The plan covers 72 NHC and 29 HC. The NHC receives an average of 4.5% benefit and the HC receives 6.5%. Which of the following statements is (are) correct?
The XYZ company plan meets the ratio percentage test.
The XYZ company plan fails the average benefits test.
The plan must and does meet the ADP test.
C. Both 1 and 2.
Please explain
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