Question ID: $1249858$

There are two minimum requirements for new comparability profit$-$sharing plans. The first is the allocation rate for each non$-$highly compensated employee $($NHCE$)$ must be at least one$-$third of the allocation rate of the highly compensated employee $($HCE$)$ with the highest allocation rate. What is the second, alternative requirement?

A$)$

The allocation rate for each NHCE must be at least $5\%$ of the employee$$s compensation.

B$)$

The allocation rate for each NHCE must be at least $7\mathrm{.}25\%$ of the employee$$s compensation.

C$)$

The allocation rate for each NHCE must be at least $7\mathrm{.}5\%$ of the employee$$s compensation.

D$)$

The allocation rate for each NHCE must be at least $5\mathrm{.}5\%$ of the employee$$s compensation.