In a qualified plan, when are employer contributions tax-deductible?AOnly if the employee also makes a contributionBImmediately after they are madeCOnly after the employee retiresDWhen the employee dies
B: Immediately after they are made
Employer contributions to a qualified plan are tax-deductible in the year they are made, regardless of whether or not the employee also makes a contribution. This means that the employer can deduct the contribution from their taxable income for that year. The employee’s contributions, on the other hand, may or may not be tax-deductible, depending on the type of plan and their individual tax situation. It is important to note that there are limits to the amount that can be contributed to a qualified plan each year, and these limits can change from year to year.
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