An employer receives an immediate tax deduction for pension and profit-sharing contributions made on behalf of employees.

Question

Quizplus · Accepted Answer

This statement is true. Employers can receive a tax deduction for contributions made to their employees' pension and profit-sharing plans. The deduction is generally limited to a certain percentage of the employee's compensation or a specific dollar amount for the plan year.

An Employer Receives an Immediate Tax Deduction for Pension and Profit-Sharing