23. Bob earns $40,000 during the current year. His employer contributes $2,000 (5 percent of Bobs salary)

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23. Bob earns $40,000 during the current year. His employer contributes $2,000 (5 percent of Bob’s salary) to a qualified retirement plan for Bob. This pension plan is what kind of plan?

a. Defined benefit plan

b. Defined contribution plan

c. Employee stock ownership plan

d. Profit-sharing plan

e. None of the above LO 3.6

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Income Tax Fundamentals 2011

ISBN: 9780538469197

29th Edition

Authors: Gerald E. Whittenburg, Martha Altus-Buller

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