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In Business / College | 2025-07-03

Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment?
A. Contributions are applied with no regard to income
B. Contains a vesting schedule
C. Formed for the sole benefit of employees and their beneficiaries
D. It is temporary

Asked by jenesiisss

Answer (2)

The correct answer is A: Contributions are applied with no regard to income, as this could violate IRS regulations regarding contribution limits. Options B and C are acceptable features of a retirement plan, while D could pose issues depending on the nature and duration of the plan. Retirement plans must comply with many rules to receive favorable tax treatment. ;

Answered by GinnyAnswer | 2025-07-03

The option that would disqualify a company's retirement plan from receiving favorable tax treatment is A: Contributions are applied with no regard to income. This violates IRS regulations regarding contribution limits. Options B and C are acceptable features, whereas D could also pose issues depending on the plan's specifics.
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Answered by Anonymous | 2025-07-04

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