Current Distribution Plans

question 27

Multiple Choice

Current distribution plans:

• A) place earnings in an escrow account for distribution upon termination, disability, or death
• B) create retirement funds
• C) are the fastest growing type of profit sharing plan
• D) provide a percentage of profits to be distributed quarterly or annually to employees
• E) are devised to relate short-term profitability to top management performance

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Definitions:

AGI

A computation of your earnings from your overall income, Adjusted Gross Income is employed to identify the amount of your earnings that is subject to tax.

Child And Dependent Care Credit

A tax credit offered to taxpayers for expenses related to the care of children under 13 or disabled dependents, enabling the taxpayer to work or look for work.

Dependent Child

A child who relies on another person for more than half of their support and qualifies for the potential of tax benefits for the supporting individual.

Full-Time Student

An individual who is enrolled in a post-secondary institution and meets the institution's requirements for full-time status.