GH Pharma Inc. is planning to introduce employer-sponsored SIMPLE IRA as the retirement plan for its employees. Which of the following is true in this context?
A. If GH Pharma Inc. establishes a SIMPLE IRA it does not have to worry about meeting the minimum participation/minimum coverage rules applicable to other types of plans.
B. If GH Pharma Inc. makes matching contributions it must match employee contributions up to 7 percent of the employee's compensation for the calendar year.
C. Employees who received at least $2,000 in compensation during any prior tax years will be eligible to participate in the firm's SIMPLE IRA plan for the current year.
D. GH Pharma Inc. will need to make either matching contributions or elective contributions.
Answer: A
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