A Salary-Reduction Plan Is Also Known as a

question 56

Multiple Choice

A salary-reduction plan is also known as a

• A) 401(k) plan.
• B) Money-purchase plan.
• C) Profit-sharing plan.
• D) Defined-benefit plan.
• E) Stock bonus plan.

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Definitions:

Personal Property

Movable items owned by an individual or corporation, as opposed to real property like land or buildings.

Lease Interest

Lease interest typically refers to the financial interest or cost associated with leasing a property or equipment, which includes the rate at which interest is charged on the lease balance.

Life Estate

A legal arrangement where an individual has the right to use a property for their lifetime, but does not own the property outright.

Conveys

Transfers ownership or title of property or rights from one person or entity to another.