Retirement pay from employer is not taxable, provided the following requirements had been complied with, except:Select one:a.The retiree received the retirement for the first timeb.The retirement plan of the employer to its employees are approved by the BIR Commissionerc.The retiree should have been at least 50 years oldd.The retiree should have been employed for 5 years in the said company

The following are the requirements so that the retirement pay received by an employee from his/her employer is nontaxable, except:Select one:a.The retirement pay should have been availed of for the first time.b.The retirement program of the employer to its employees are approved by the BIR Commissionerc.The retiree should have been employed for 10 years in the said company.d.The retiree should have been at least 40 years old at the time of retirement.Clear my choice

Mr. Chris Cruz, 60 years old, manager at DEF Company, retired during the taxable year. Because of his exemplary performance for the last 25 years, the company, which did not have an approved retirement plan, gave him P500,000 as retirement pay. In addition, he also received P300,000 from SSS as a retirement benefit. Is the total retirement pay of Mr. Crz from his employer and the SSS taxable?Answer I No, the total amount of P800,000 is not a taxable retirement pay.Answer II Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable.Select one:a.Both answers are correctb.Both answers are wrongc.No, the total amount of P800,000 is not a taxable retirement pay is correct: Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable is wrongd.No, the total amount of P800,000 is not a taxable retirement pay is wrong:Partly taxable, partly not. The amount from his employer is taxable while the amount from the SSS is not taxable is correct

Your federal income taxes will probably be lower during the retirement years.Group of answer choicesTrueFalse

Question 14Under defined contribution plan:Answer :The employer’s contribution is unknown.   The benefits payable to the retiring employees is unknown.   The amount of benefits to be received by the retiring employees depends on the amounts originally contributed plus income from investments accumulated in the fund.    The benefits of gains or risks of losses invested under the fund are borne by the employees.

"The idea i(of a tax-deferred investment) is that you'll be in a lower income tax bracket in retirement, so you'll enjoy more favorable tax rates at that time than you would during your peak earning years. By deferring taxes, you hope to reduce your overall tax bill on the funds in the account."If - as someone who might invest heavily during your working lifetime and have passive income greater than earned income at retirement - you are actually in a higher tax bracket in your "golden years" the tax benefit referenced above would go away.Group of answer choicesTrueFalse