Respuesta :
Answer:
Traditional 401 (K) plan
Step-by-step explanation:
The fact that the contributions to the pension plan are deducted before payroll taxes means that the plan in question is a traditional 401 (K) plan with taxes on the earnings deferred until the employee eventually withdraws funds from the pension plan.
This is quite different from Roth 401 (K) Plan where the contribution is not tax deferred ,instead contributions are made after payroll taxes have been sorted but eventual withdrawal from the plan is tax exempt.
The fact that his employer sponsors his benefit package, and the contributions are , indicates that Spencer’s retirement account is a Traditional 401 (K) plan.
Given that,
Spencer has a retirement account through his employer.
His monthly contributions to the account are taken out of his check before payroll taxes are calculated.
We have to determine,
The fact that his employer sponsors his benefit package, and the contributions are , indicates that Spencer’s retirement account is ?
According to the question,
An employer-sponsored retirement savings account is an account in which you do not pay tax on all contributions and earnings. You only pay taxes on contributions and earnings when the money is withdrawn.
This type of account also provides a means of matching contributions to your account such as 0% to 100% of contributions range from 0% to 100% of your contributions.
The fact that the contributions to the pension plan are deducted before payroll taxes means that the plan in question is a traditional 401 (K) plan with taxes on the earnings deferred until the employee eventually withdraws funds from the pension plan.
A tax-deferred account lets you delay paying taxes until you retire. Examples include traditional 401 (k)s and traditional IRAs. With a tax-exempt account, you pay taxes now and enjoy tax-exempt distributions when you retire.
Examples include Roth IRAs and Roth 401 (k)s.
This is quite different from Roth 401 (K) Plan where the contribution is not tax deferred ,instead contributions are made after payroll taxes have been sorted but eventual withdrawal from the plan is tax exempt.
Hence, The fact that his employer sponsors his benefit package, and the contributions are , indicates that Spencer’s retirement account is a Traditional 401 (K) plan.
For more details refer to the link given below.
https://brainly.com/question/10138772
