What are the tax consequences)related to a qualified pension plan?

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Quizplus · Accepted Answer

Qualified pension plan contributions made by employers are tax-deductible when they are made. This means that employers can reduce their taxable income by the amount of contributions they make to the qualified pension plan.

Employees, on the other hand, are not taxed until distributions are received from the plan. This means that the money contributed to the plan by the employee is not taxed as it is earned, but it is taxed when distributions are taken during retirement.

Overall, the tax consequences of a qualified pension plan are generally favorable, as both employer contributions and employee contributions are taxed at a later time, allowing for tax-deferred growth of funds in the plan.

What Are the Tax Consequences)related to a Qualified Pension Plan