INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 150

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-If your budget shows a deficit,[increase income | increase expenses] to regain balance.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Qualified Pension Plan

A retirement plan that meets requirements established by the Internal Revenue Code, offering tax advantages such as tax-deferred growth on earnings.

Ordinary Income Rates

Tax rates applicable to an individual's ordinary income, including wages, salaries, commissions, and income from interest or dividends, which are taxed at progressive rates.

Employee Contributions

Employee Contributions are amounts set aside from an individual's earnings into retirement plans, benefit plans, or taxes, often deducted directly from their paycheck.

Tax-deferred Retirement Plans

Savings plans that allow individuals to postpone paying taxes on income invested until it is withdrawn, typically during retirement.