NOT a federal requirement of a Qualified plan?

• A. Employer must offer coverage to all full-time employees
• B. Employee must be able to make unlimited contributions
• C. Plan must meet nondiscrimination requirements
• D. Plan must be affordable to employees

Answer: (B)

A qualified plan is governed by IRS/ERISA rules that set limits on how much can go into the plan each year. Unlimited contributions aren’t allowed; there are annual and overall contribution limits for different types of qualified plans. That’s why the idea that employees must be able to make unlimited contributions is not a federal requirement—and in fact contradicts how these plans operate.

By contrast, qualified plans must follow nondiscrimination rules to prevent highly compensated employees from getting all the benefits, and they include eligibility/participation rules to ensure broad participation. The notion of affordability mainly applies to health coverage under other federal rules, not retirement-qualified plans, so it isn’t a standalone requirement in the same way.