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Income Tax Planning
Chapter 5: Gross Income from Employment/INCOME TAXATION & EMPLOYER RETIREMENT PLANS
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 5: Gross Income from Employment

INCOME TAXATION & EMPLOYER RETIREMENT PLANS

01.Core Concepts

• Involves Doctrine of Constructive Receipt • Employee Deferrals • Election made before income earned • Excluded from current income • Employer Contributions • Excluded from employee’s current income • Plan Earnings • Tax deferred until distributions are made • Plan Distributions • Generally taxed as ordinary income • Not subject to payroll taxes • Early distribution penalty – 10%