Contributions to an employer-sponsored qualified retirement plan are deductible by the employer in the year of contribution but are not included in the employees' gross income.

Question

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Contributions to a qualified retirement plan are made on a pre-tax basis, which means that they are not included in an employee's gross income. The employer can deduct the contributions they make to the plan in the year they are made.

Contributions to an Employer-Sponsored Qualified Retirement Plan Are Deductible by the Employer