Question: How does the length of time that the pension contribution
How does the length of time that the pension contribution will remain in the pension account affect whether pension is preferred to salary? Under what conditions is the duration of the pension investment irrelevant?
Relevant QuestionsHow does the Black Tepper stocks-versus-bonds puzzle pertain to pension planning? Is it still tax advantageous for corporations to hold bonds in their pension accounts subsequent to the 1986 Tax Act? Suppose a firm has a defined benefit pension plan and faces a marginal tax rate on ordinary income of 35%. The firm can earn or issue fully taxable bonds that yield 12% and can purchase stock yielding 18%. Describe and ...A newly established firm wants to establish a pension plan for its employees. The firm hires you to prepare a report comparing a defined benefit pension plan with a defined contribution pension plan. The firm also requires a ...What are the tax differences between operating as a foreign branch and a foreign subsidiary of a U.S. corporation? What are the advantages and disadvantages of each form? Bloomington Pharmaceuticals is a U.S. corporation considering where to locate a new manufacturing facility. The facility will require an investment of $50 million, and any profits during the n-year investment horizon will be ...
Post your question