Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Plan Compliance Analyst (Administrator)

RPA
(Remote)

RPA logo

Education Consultant

Pentegra
(Remote / Putnam Valley NY)

Pentegra logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

<< Previous news item   |   Next news item >>



Some Pension Fallacies Debunked (PDF)
H.C. Foster & CompanyLink to more items from this source
Oct. 7, 2015
"Tax deferrals enable business owners and employees at all compensation levels to retain control of income that is otherwise paid to IRS for its use. Assuming a 6.0% annually compounded discount rate, $1 paid to a pension plan at age 40 rather than paid to IRS in taxes has a discounted value of $.23 when taxed as a pension distribution at age 65 for an immediate $.77 profit. Or, that $1 pays $4.29 of taxes on retirement income at age 65. This clearly debunks the notion that tax deferrals from a pension plan are of little or no value because taxes are ultimately paid on distributions at retirement."

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2022 BenefitsLink.com, Inc.