Asked by Duncan Jackman on Jul 08, 2024
Verified
Which of the following statements is not correct?
A) The U.S.income tax code influences pension fund contributions.
B) The U.S.income tax code creates incentives for firms to overfund their pension plans.
C) The earnings from pension fund investments are taxable to the pension plan sponsor.
D) Firms with larger union memberships tend to have higher pension funding ratios.
U.S. Income Tax Code
The body of laws and regulations that govern how individuals, businesses, and other entities are taxed by the federal government of the United States.
Pension Fund Contributions
Payments made into a pension fund by employers, employees, or both, intended to finance future benefit payments to retirees.
Pension Plan Sponsor
The entity, typically a company or employer, that sets up and maintains a pension plan for the benefit of its employees.
- Recognize how U.S. income tax code affects pension funding and strategy.
Verified Answer
Learning Objectives
- Recognize how U.S. income tax code affects pension funding and strategy.
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