Fpc Payroll Benefit Basics 4.4-4.6 Already Passed

Qualified Plans {Ans: 401(k) 403(b)}Section 457(b) allows {Ans: employees of state and local governments to defer receipt of wages that would otherwise be considered income}If the employee's interest is nontransferable and is subject to a substantial risk of forfeiture or the plan meets IRC Section 409 A's requirements that restrict distributions and require deferral elections before the tax year {Ans: the employee pays no federal income tax on the deferred compensation until the amount contributed to the plan is distributed to the employee. The distribution is reported on W-2.}IRC {Ans: Internal Revenue Code}Cafeteria plan contributions are {Ans: not subject to social security or Medicare tax with the exception of 401(k) plan contributuons}Section 403(b) {Ans: applies to employees of public schools and nonprofit organizations.}