Answered: Which of the following would be…

Business

Accounting

Which of the following would be considered a tax benefit or advantage of a qualified retirement plan?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter10: Deductions And Losses: Certain Itemized Deductions

Section: Chapter Questions

Problem 6CPA

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Question

Which of the following would be considered a tax benefit or advantage of a qualified retirement plan?

Certain distributions may be subject to capital gain treatment.

2. Employer contributions are deductible by the employer in the year of contribution.

3. Employee contributions are deductible by the employee in the year of contribution.

4. The qualified plan is tax-deferred as to all income.

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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