Which of the Following Is True Concerning Employer Funding of Nonqualified

question 133

Multiple Choice

Which of the following is true concerning employer funding of nonqualified deferred compensation plans?

• A)Employers are required to invest salary deferred by employees in investments specified by the employees.
• B)Employers are required to annually fund their deferred compensation obligations to employees.
• C)Employers annually deduct the amount earned by employees under the plan.
• D)Employers may discriminate in terms of who they allow to participate in the plan.

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Definitions:

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Tax Evasion

The illegal practice of not paying taxes by individuals or businesses by not reporting income, reporting expenses not legally allowed, or by not paying taxes owed.

Money Laundering

The illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to be earned legally.

Federal Agencies

Specialized organizations within the federal government, each with specific responsibilities and authority in areas such as health, safety, and environmental protection.