To Create: Math example why employee participate in a tax sheltered program have benefit in tax. Concept Introduction: Tax sheltered investment are the investments which helps a person to save tax. These investment is reduces from the income of person while calculating taxable income. Many types tax sheltered investment like retirement plans investment or municipal bonds etc.

Question

Describe three criteria of the 13 minimum standards on which plan status is determined to qualify retirement plans for preferential tax treatment. Are employees more likely to favor defined contribution plans over defined benefit plans? What about employers? Explain your answer. Explain why mobile employees might prefer cash balance plans over defined benefit plans.

Answer 1

Question

Chapter 1.5, Problem 3CC

Summary Introduction

To Create: Math example why employee participate in a tax sheltered program have benefit in tax.

Concept Introduction: Tax sheltered investment are the investments which helps a person to save tax. These investment is reduces from the income of person while calculating taxable income. Many types tax sheltered investment like retirement plans investment or municipal bonds etc.

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