If Contributions Are Made to an Employer-Sponsored (I

question 41

Multiple Choice

If contributions are made to an employer-sponsored (i.e., not a Federal retirement program) , qualified retirement plan,

• A)The employer's contributions on behalf of the employee are not includible in the employee's gross income.
• B)The employer is entitled to a current deduction for contributions to such plans.
• C)The employee includes the retirement benefits in his or her gross income in the tax year of receipt.
• D)All of the above are true.

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Definitions:

American Household

A domestic unit in the United States, which may consist of family members and/or other unrelated individuals who live together.

Metropolitan Statistical Area

A geographical region with a relatively high population density at its core and close economic ties throughout the area, used in statistical analysis and policy making.

Urbanized Area

A densely populated area characterized by high human settlement and infrastructure such as roads, buildings, and utilities that support a city or town.

Economic Integration

The process by which different countries reduce barriers to trade and investment, making economies more closely interconnected.