All the following statements concerning XYZ Corporations use of a secular trust are correct, EXCEPT:

(A) Funds held in a secular trust cannot be reached by the employers creditors.

(B) The IRS has ruled that trust earnings may be subject to taxation when they are earned at the trust level and again when actually paid out to the executive.

(C) Employer contributions to a secular trust are taxed as compensation to the executive and may be claimed as a tax deduction by the employer in the year in which such contributions are made.

(D) Nonqualified deferred-compensation benefits promised by the employer under a secular trust are less secure than they would be under a rabbi trust.