Match Each Statement with the Correct Term Below

question 2

Multiple Choice

Match each statement with the correct term below.
-Qualified pension plan

• A)An employee may exclude up to $5,000 annually of these employer-provided services.
• B)If cash is received under this program, taxpayers are taxed on the amount of cash received.
• C)A salary reduction plan that allows employees to pay for medical and child care costs with before-tax dollars.
• D)A transfer of property without any profit motivation with an intention that includes affection, charity, and respect.
• E)Payments made into an employee's account are not taxable in the current period; taxation is deferred until funds are withdrawn.
• F)Employer provided benefit that may be excluded from income because the dollar amounts are too small for a reasonable accounting.

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Definitions:

Real Rate Of Interest

The rate of interest an investor expects to receive after allowing for inflation.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, indicating the health of an economy.

Labor Force

The aggregate sum of individuals working or in pursuit of work within a nation or area.

Discouraged Workers

Individuals not actively seeking employment because they believe no jobs are available for them.