Payments made to a qualified retirement plan by an employer are considered part of the employee's investment in the contract for calculation of the annuity exclusion ratio.

Question

Quizplus · Accepted Answer

Payments made by an employer to a qualified retirement plan are not considered part of the employee's investment in the contract. The employee's investment typically includes only after-tax contributions made by the employee, not the employer contributions.

Payments Made to a Qualified Retirement Plan by an Employer