Taxation

This year, Mrs. Kurata’s corporate employer made a $8,300 cash contribution to her retirement savings plan. Her interest in the plan is fully vested, so she has the legal right to withdraw the contribution at any time. Describe the tax consequences of the contribution to Mrs. Kurata and to the corporate employer assuming the following. a. The plan is a qualified defined-contribution plan.b. The plan is a nonqualified savings plan.