Which of the following statements about the tax implications of qualified pension plans is true?

Question

Quizplus · Accepted Answer

Employer contributions to qualified pension plans are deductible as an ordinary business expense, up to certain limits set by the Internal Revenue Service (IRS). Investment income on plan assets is not taxed until it is withdrawn from the plan. Distributions from qualified pension plans are taxable as ordinary income to the retiree, unless the plan meets certain requirements for tax-free treatment (such as a Roth 401(k) plan). Therefore, option A, C, and D are incorrect.

Which of the Following Statements About the Tax Implications of Qualified