All of the Following Statements About Section 401(k)plans Are Correct

All of the following statements about Section 401(k) plans are correct EXCEPT

A) Elective salary deferrals to these plans are free of federal income taxation until the funds are actually withdrawn.
B) These plans are subject to rules that prevent discrimination in favor of highly compensated employees.
C) There is no limit on the actual percentage of salary that can be deferred by highly compensated employees under a qualified plan.
D) Most plans allow employees to determine how funds are invested.