ESOPs can qualify as tax-exempt employee trusts under section ____ of the Internal Revenue Code.
A) 402(k)
B) 457(k)
C) 401(k)
D) 407(k)

Question

Quizplus · Accepted Answer

ESOPs can qualify as tax-exempt employee trusts under section 401(k) of the Internal Revenue Code, which provides for certain tax advantages for employee retirement plans, such as tax-deferred contributions and earnings. Section 402(k) relates to the taxation of distributions from qualified plans, while section 457(k) pertains to deferred compensation plans for employees of state and local governments and tax-exempt organizations. Section 407(k) is not a valid section of the Internal Revenue Code.

ESOPs Can Qualify as Tax-Exempt Employee Trusts Under Section ____