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Your client has the following beliefs about the allocation of forfeitures of contributions to employees who leaves the company.
Which of the following statements is/are correct?
(1) departing plan participants are entitled to their entire account balances regardless of the vesting schedule in effect.
(2) forfeitures could be allocated to the plan participants in exactly the same manner as the employer's contributions.
(3) unless specific steps were taken to the contrary, the allocation of forfeitures in this company's plan over time would tend to discriminate in favor of the relatively few longer-hired and more highly paid employees.
(4) the company could use forfeitures to offset amounts it would otherwise contribute to employee's accounts.
Select one:
a. 2 only
b. 1 and 2 only
c. 1 and 4 only
d. 3 and 4 only
e. 2, 3, and 4 only
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