U.S.tax law limits the deductibility of contributions to pension plans for firms whose plans

A) are underfunded.
B) are overfunded.
C) have no current benefit recipients.
D) are part of a benefits package.

Tax Law

Legislation and regulations governing how taxes are assessed, collected, and managed by governmental authorities.

Deductibility

The eligibility of an expense to be subtracted from gross income to reduce taxable income.

Pension Plans

Financial arrangements designed to provide individuals with an income during retirement, funded by either the employer, the employee, or both.