Which of the Following Statements Concerning Nonqualified Deferred Compensation Plans

question 40

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:

Participate

To take part or become involved in an activity or event.

Job Satisfaction

The level of contentment employees feel towards their work, influenced by factors such as work environment, compensation, and job nature.

Performance

The level at which an individual, group, or organization executes tasks or obligations, often measured against predetermined standards.

Organizational Citizenship Behaviour

Voluntary actions exhibited by employees that contribute to the organization's well-being beyond their obligatory tasks.