Which of the Following Is Not a Benefit of Nonqualified

question 106

Multiple Choice

Which of the following is not a benefit of nonqualified deferred compensation plans?

• A) Nonqualified plans may discriminate in favor of highly compensated executives.
• B) There is no limit on the amount of nonqualified deferred compensation that can be provided to an employee.
• C) Nonqualified deferred compensation plans are less risky for participating employees than qualified retirement plans.
• D) Employers do not have to expend cash to fund a nonqualified plan.

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Definitions:

Central Nervous

The Central Nervous System (CNS) consists of the brain and spinal cord, playing a crucial role in controlling bodily functions and processing information.

Somatic Nervous

A component of the peripheral nervous system that controls voluntary movements of the body and transmits sensory and motor information to and from the central nervous system.

Peripheral Nervous

Part of the nervous system consisting of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the CNS to limbs and organs.

Organized Network

A structured system of interconnected individuals or entities that share information or work towards common goals.