Which One of the Following Is an Advantage of a Qualified

question 75

Multiple Choice

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

• A) An immediate tax deduction 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) Employees need not contribute to the fund
• E) Allows an organization to set up a retirement plan that provides benefits exclusively to its owners and top managers

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Definitions:

Encoding

The set of mental operations that people perform on sensory information to convert that information into a form that is usable in the brain’s storage systems.

Retrieval

The act of retrieving and making conscious previously stored memory information.

Encoding

The process of converting information into a form that can be stored in memory.

Neural Messages

Electrical and chemical signals that are transmitted by neurons to send information throughout the nervous system.