Which of the Following Statements Comparing Qualified Defined Contribution Plans

question 84

Multiple Choice

Which of the following statements comparing qualified defined contribution plans and nonqualified deferred compensation plans is false?

• A)Employers must fund qualified defined contribution plans but not nonqualified deferred compensation plans.
• B)Qualified defined contribution plans are subject to formal vesting requirements while nonqualified deferred compensation plans are not.
• C)Distributions from both types of plans are taxed at ordinary income tax rates.
• D)In terms of tax consequences to the employee, earnings on qualified plans (except Roth plans)are deferred until distributed to the employee but earnings on nonqualified plans are immediately taxable.

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Definitions:

Autonomy Support

The degree to which an organization or leader encourages and facilitates employees' sense of choice and volition in their work.

Meaningful Rationale

is a coherent, persuasive explanation or reason that provides significant justification for actions or decisions.

Emotional Intelligence

The ability to identify, assess, and control the emotions of oneself, of others, and of groups.

Need Theories Of Motivation

Frameworks that suggest motivation is driven by an individual's desire to fulfill specific needs, ranging from basic physical needs to complex psychological ones.