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:

Ratio

A quantitative relationship between two numbers showing how many times the first number contains the second.

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An island country located in East Asia, known for its rich cultural heritage, advanced technology, and economic influence.

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The capacity or ability of a political entity or individual to influence the behavior of others, particularly in the governance context.

Substitute Products

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