Which of the following describes the tax advantage of a qualified retirement plan

Which of the following describes the tax advantage of a qualified retirement plan


A) The earnings in the plan accumulate tax deferred.

B) Distributions prior to age 59½ are tax deductible.

C) Employer contributions are deductible as a business expense when the employee receives benefits.

D) Employer contributions are not taxed when paid out to the employee



Answer: The earnings in the plan accumulate tax deferred

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