If an employer makes a contribution to a qualified retirement plan on behalf of an employee, the amount is currently deductible by the employer, and the employee must include the amount in gross income at the time the contribution is made.

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Employer contributions to a qualified retirement plan are currently deductible by the employer, but they are not included in the employee's gross income at the time the contribution is made. Instead, these contributions and their earnings are taxed upon distribution.

If an Employer Makes a Contribution to a Qualified Retirement