Ross Works for Houston Corporation,which Has a Contributory Defined Contribution

question 41

Multiple Choice

Ross works for Houston Corporation,which has a contributory defined contribution pension plan.The employer's monthly contribution to the plan is 8 percent of each participating employee's monthly salary,while the employee contributes only 6 percent.Ross's monthly salary is $3,000.Which of the following statements best describes the benefits of the plan?

• A)Houston receives a deduction for its contributions to the plan when Ross receives a distribution from the plan.
• B)While Ross is taxed on the employer's contributions to the plan,his own contributions are not taxed until he receives a distribution from the plan.
• C)Ross may deduct his own contributions to the pension plan,and Ross reports income from the plan each year until he receives distributions from the plan.
• D)The earnings on amounts contributed to the plan are not taxed to Ross until he retires or receives a distribution from the plan.

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Definitions:

Piaget

A theorist renowned for detailing the stages of cognitive development in children, emphasizing how they progress through distinct stages including sensorimotor, preoperational, concrete operational, and formal operational stages.

Cognitive Processes

The mental actions or steps involved in acquiring knowledge and understanding through thought, experience, and the senses.

Mental Processing

The internal cognitive activity that allows the mind to process information such as thoughts, understanding, remembering, and decision-making.

Early Experiences

Influential events or interactions in the early stages of an individual's life that significantly shape their development, behavior, and learning.