From a Tax Perspective, Participating in a Nonqualified Deferred Compensation

question 60

True/False

From a tax perspective, participating in a nonqualified deferred compensation plan is an effective tax planning strategy when the employee anticipates that her marginal tax rate will be higher when she receives the deferred compensation than when she defers the compensation.

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Definitions:

Negative Float

The amount of time that must be saved in order to complete a project on schedule, indicating a project is behind its planned timeline.

Contingency Resources

Assets or capacities set aside or planned to address potential future events or emergencies in project management.

Lead Time

The period required to complete a process or fulfill an order before the actual delivery or deployment.

Lag Time

The delay between two related activities or processes, such as the time between the completion of one task and the start of another in a project.