Claudia's vested Section $401($k$)$ plan balance is $$60,000.$ She wants to know her options for taking a loan from her plan to pay some college expenses for her daughter, Caroline. Which of these statements is CORRECT?

Claudia may borrow up to $$30,000$ from her Section $401($k$)$ plan to pay for Caroline's college expenses.

A plan loan is generally limited to half of the vested account balance of the plan participant, not to exceed $$50,000.$

All loan repayments for any loan must be in level installments payable at least quarterly.

If the rules for a plan loan are not followed, a plan loan may be deemed a taxable plan distribution and may also be subject to the $10\%$ early withdrawal penalty.

A$)$

I, II$,$ III, and IV

B$)$

I and IV

C$)$

I and II

D$)$

II and III

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