Which of the Following Statements Is Incorrect

question 40

Multiple Choice

Which of the following statements is incorrect?

• A)A SIMPLE plan is an employer-sponsored retirement plan.
• B)A payment to a beneficiary from a pension plan is called a distribution.
• C)Tax-deferred plans can be created for purposes other than retirement.
• D)Retirement plans are always funded with contributions that have not been taxed,so the withdrawals are taxed.

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Definitions:

Initial Cost

The amount of money spent to acquire, or invest in, an asset or project before it begins generating revenue.

Rate of Return

The enhancement or diminution in an investment’s value over a fixed span, presented as a percentage of the investment’s original price.

Rate of Return

The upward or downward movement in the value of an investment across a predefined period, depicted as a percentage of the initial investment cost.

Equipment

Tangible physical assets used in the operation of a business, such as machinery, computer hardware, and vehicles, that have a longer life expectancy and are not intended for resale.