Which of the Following Statements Concerning Nonqualified Deferred Compensation Plans

question 19

Multiple Choice

Which of the following statements concerning nonqualified deferred compensation plans is True?

• A) If an employer doesn't have the funds to pay the employee, the employee becomes an unsecured creditor of the employer.
• B) These plans can be an important tax planning tool for employers if they expect their marginal tax rate to decrease over time.
• C) These plans can be an important tax planning tool for employees who expect their marginal tax rate to increase over time.
• D) Distributions are taxed at the same tax rate as long-term capital gains.

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Definitions:

Psychoanalysis

A method of therapy and theory of personality developed by Sigmund Freud that emphasizes unconscious motives and conflicts.

Conscious Awareness

The state of being awake and aware of one's surroundings, thoughts, and feelings.

Unconscious

A part of the mind that stores feelings, thoughts, urges, and memories that are outside of our conscious awareness.

Forensic Psychologists

Professionals specialized in applying psychological knowledge to legal questions and issues, including criminal profiling, competency evaluations, and assessments of witness credibility.