What is tax planning, and how is it related to savings and investment planning? Tax planning involves evaluating your current and projected earnings and developing strategies that can legally and/or your tax liability As it is currently written, the U.S. tax code recognizes several types of taxable income, including: .Active, or . Passive income . Portfolio, or . Tax-deferred and/or tax-free income income ,income Tax planning is closely related to savings and investment planning, because tax-reducing strategies often involve the use of tax-deferred or tax-free investments Tax-free investments are so called because the interest or other income paid to their owners is federal, and, perhaps, state taxes. Owners of tax-deferred investments, on the other hand, are allowed to paying taxes on any returns generated by the investment. What is employee benefit planning? Employee benefit planning involves selecting, coordinating, and managing employer-provided compensation that the form of cash payments, such as wages, salaries, and commissions These benefits can include sick leave, vacation, and personal time; life, health, and disability insurance; tuition reimbursement programs; pension, profit-sharing, and (FSAs) for retirement plans; and flexible spending accounts care and health care expenses Which of the following are tasks included in the process of employee benefit planning? Check all that apply Ensure the availability of a minimum necessary level of protection and coverage should you or your spouse lose your employer-provided benefits Select the most appropriate benefits and plans Determine the best investments to make Coordinate self-purchased policies and coverages with benefits provided by your and your spouse's employer