Which of the Following Is an Advantage of a Qualified

question 83

Multiple Choice

Which of the following is an advantage of a qualified plan in retirement benefits?

• A) Immediate tax deductions for the funds employees contribute to the plan
• B) Taxable earnings on the money in the retirement fund
• C) Tax-free withdrawals for highly compensated employees
• D) Exemption of contribution from employees
• E) A retirement plan that provides benefits exclusively to its owners and top managers

---

Definitions:

Political Activism

The practice of taking vigorous action, often in support of or opposition to one side of a controversial issue.

Fourteen Points

President Woodrow Wilson’s 1918 plan for peace after World War I; at the Versailles peace conference, however, he failed to incorporate all of the points into the treaty.

Self-Determination

The principle that peoples have the right to freely choose their sovereignty and international political status with no interference.

League of Nations

An international organization established after World War I to promote peace and cooperation among countries, though it ultimately proved ineffective at preventing conflict.