Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

Your organization currently has a defined contribution pension plan with employees contributing up to 3% with a company match. Effective with the first pay of the new year, new employees will no...

1 answer below »
Your organization currently has a defined contribution pension plan with employees contributing up to 3% with a company match. Effective with the first pay of the new year, new employees will no longer be enrolled in that plan. Instead, they will be enrolled in the new Group Registered Retirement Savings Plan (RRSP) with the same contribution options. In your own words, explain the difference in the T4 information slip reporting for these two groups of employees.
Answered Same Day May 09, 2022

Solution

Prince answered on May 10 2022
82 Votes
A Defined Contribution plan, like a 401(k) and 403(b), would be a tax defe
ed retirement system wherein employees contribute a set amount or a proportion of their earnings to an account that will finance their retirement. As a bonus, the sponsoring company may match a portion of employee contributions. These programs restrict when and how employees can take money from the account without suffering fines.
401(k) and 403(b) defined contribution schemes are commonly used by businesses and organizations to motivate their staffs to save for future.
DC plans differ from defined-benefit (DB) pensions, which are guaranteed by the employer. A DC plan has no guarantees, and participation is entirely optional.
It's impossible to anticipate how often a defined contribution program would provide a worker once they retire since contribution amounts and investment gains vary over time.
Payments to a defined contribution plan can be made tax-free. In traditional defined-contribution plans, contributions are tax-defe
ed, but withdrawals are taxed. A Roth 401(k)...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here