1.) For individuals saving towards retirement, money saved in CD accounts and ot
ID: 2804130 • Letter: 1
Question
1.) For individuals saving towards retirement, money saved in CD accounts and other similar personal savings accounts must pay taxes when it is withdrawn during retirement, True or False. 2.) a define benefit plan shifts the risk of insufficient retirement savings from the employer to the employee, true or false ? 1.) For individuals saving towards retirement, money saved in CD accounts and other similar personal savings accounts must pay taxes when it is withdrawn during retirement, True or False. 2.) a define benefit plan shifts the risk of insufficient retirement savings from the employer to the employee, true or false ? 2.) a define benefit plan shifts the risk of insufficient retirement savings from the employer to the employee, true or false ?Explanation / Answer
1. For individuals saving towards retirement, money saved in CD accounts and other similar personal savings accounts must pay taxes when it is withdrawn during retirement.
This statement is true
Yes it is true that for individuals saving towards retirement, money saved in CD accounts and other similar personal savings accounts must pay taxes when it is withdrawn during retirement. Generally the benefit individuals get is the lower tax rate because of falling in lower tax brackets due to reduced annual income after retirement.
2. A define benefit plan shifts the risk of insufficient retirement savings from the employer to the employee.
This statement is false.
In a define benefit plan, the future benefits are already defined therefore employees are not at risk and they know their retirement benefits. Risk in defined benefit plan are associated with the cost of the plan therefore it is on the sponsors of the plan which are generally employers.
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