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:

Express Warranty

An express warranty is a seller's promise or guarantee that a product will meet a certain quality or functionality standard.

Value or Worth

The importance, usefulness, or monetary valuation of something, often subject to change based on market demand or condition.

Statement About

A declaration or account made about a specific subject, detailing facts or opinions.

Implied Warranty

A legal term for the assumption that a sold product will fulfill its intended purpose.