There Are Several Different Types of Qualified Retirement Plans

question 80

True/False

There are several different types of qualified retirement plans.One common criteria across qualified retirement plans is that employers deduct the contributions and employees include the contributions in taxable income in the same period.

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Definitions:

Committed

Being pledged or obligated to do something, often referring to resources or efforts directed towards a specific cause or project.

Fiduciary Funds

These are funds used to account for resources held by an entity in a trustee or agent capacity for others, ensuring these assets are managed according to the trust agreement.

Proprietary Funds

Governmental accounting term for funds used by an organization that behaves like a private business, where the costs of providing goods or services to the public must be recovered through sales and fees.

Broad Classifications

Broad classifications refer to the general categories or groups used to organize similar entities, concepts, or items based on shared characteristics or functions.