Nicolas Christian Seenath 812000093

Friday, 11 July 2014

Advantages of a Pension Plan

To maintain the same standard of living after retirement
Contributions made to a pension plan are tax deductible.
Employer contributions do not result in any payroll taxes because they are not included in the calculation to determine contributions to other programs, such as employment insurance,
Investment income generated by the pension fund in which contributions accumulate are tax exempt.

The employer contributions are vested to the plan member as soon as his or her membership begins.

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