If an Employer Makes a Contribution to a Qualified Retirement

question 48

True/False

If an employer makes a contribution to a qualified retirement plan on behalf of an employee, the amount is currently deductible by the employer, and the employee must include the amount in gross income at the time the contribution is made.

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Definitions:

Chi-Squared Test Statistic

A value used in chi-squared tests to evaluate how likely observed frequencies of events are to occur under a specific hypothetical distribution.

Expected Value

In probability theory, the sum of all possible outcomes of a particular situation, each multiplied by its likelihood of happening.

Sample Size

Sample size refers to the number of observations or data points collected in a sample from a population for the purpose of statistical analysis.

Degrees of Freedom

Degrees of freedom refer to the number of independent values or quantities that can be assigned to a statistical distribution or to a system, minus the number of linearly independent constraints.