Pension Plans: It refers a plan that is formulated to provide earnings to the employees during their retirement period. As per the plan, a certain amount of funds is kept aside during the employees’ working period so that the employee could get the accumulated funds plus earnings on investing those funds during his/her retirement period as a replacement of his/her wages. To explain: the special tax treatment for the qualified pension plans and what qualifies a pension plans for these benefits.

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Chapter 17, Problem 17.2Q

To determine

Pension Plans: It refers a plan that is formulated to provide earnings to the employees during their retirement period. As per the plan, a certain amount of funds is kept aside during the employees’ working period so that the employee could get the accumulated funds plus earnings on investing those funds during his/her retirement period as a replacement of his/her wages.

To explain: the special tax treatment for the qualified pension plans and what qualifies a pension plans for these benefits.

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