What are the tax consequence(s)related to a qualified pension plan?

Question

Quizplus · Accepted Answer

The best choice is D because it includes both statements that are true. Employer contributions to a qualified pension plan are deductible when made, which can provide tax benefits for the company. Employees are not taxed until they receive distributions from the plan, which means that their contributions and any earnings on those contributions are tax-deferred until retirement. This can also provide tax benefits for employees who may be in a lower tax bracket in retirement than during their working years. However, any distributions from the plan are taxable as income when received.

What Are the Tax Consequence(s)related to a Qualified Pension Plan