EMPLOYEE COMPENSATION AND BENEFITS TAX GUIDE 2015 (BOOK)

Part II: True or False: Fully explain your response. No Credit will be given if there is no detailed explanation.

a) One purpose of a well-designed retirement plan is to discourage collective bargaining.

b) An employee cannot contribute to a profit sharing plan.

c) Nonqualified plans can provide benefits to executives beyond the limits allowed in qualified plans

d) The amount that a client has invested in real estate is not included in an assessment of retirement income need.

e) Retirement planning must consider current or future alimony and child support payments.

f) When helping a client plan for retirement, it is far more important to use an estimation process that is accurate as opposed to one that the client understands.

g) Compensation, to be deducted currently, must always be paid in cash.

H) A taxpayer who is on the cash basis of accounting can only deduct compensation.

i) A taxpayer should not have to report income when a debt is forgiven because the taxpayer receives nothing.