Which of the Following Statements Is Incorrect Regarding Unfunded Deferred

question 898

Multiple Choice

Which of the following statements is incorrect regarding unfunded deferred compensation plans?

• A) An accrual- basis employer can deduct the compensation amount when it is accrued in the year of service.
• B) An employee is taxed when the amount is actually paid or made available.
• C) A 20% excise tax will apply if the employee can voluntarily elect to receive payment early.
• D) The employee is not taxed on the compensation amount when it is deposited in an escrow account.

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Definitions:

Binge-eating

Engaging in the consumption of large amounts of food in a short period of time, often accompanied by a feeling of loss of control.

Elite Athlete

A person who competes at the highest level in their sport due to superior physical and mental conditioning.

Feeding

The act or process of supplying food and nourishment to organisms, including humans.

Eating Disorder

A range of psychological disorders characterized by abnormal or disturbed eating habits, such as anorexia nervosa or bulimia nervosa.