Question

All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT

A. Funds accumulate on a tax-deferred basis.
B. Employee and employer contributions are not counted as income to the employee for income tax purposes.
C. At distribution, all amounts received by the employee are tax free.
D. Employer contributions are tax deductible as ordinary business expense

Answer 1

The federal tax advantages of a qualified plan, except one, are explained.

Step-by-step explanation:

All of the following options are generally true of the federal tax advantages of a qualified plan( except):

The answer to the question is'C. At distribution, all amounts received by the employee are tax free.'