A 2022 plan imposes a limitation on the amount an employee can contribute to the plan (from the employee's wages). Employees can only contribute $10,000/year to the plan. This rule is applied to all employees regardless of their status or age. Which statement is most accurate regarding the employer's limitation?

1. This limitation will be legal provided 51% of the employees agreed in advance to the restriction.

2.This limitation is legal. No third party approval is required.

3.This limitation is illegal. All plans are required to provide a "catch up" contribution for employees over the age of 50.

4.This limitation will be illegal as this limitation effects non-highly compensated employees.

5.This limitation will be Illegal in all instances. Limitations on employee contributions may only be imposed by the Internal Revenue Code or ERISA.

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