Question
Which of the following situations might convince an employer to choose a nonqualified retirement plan over a qualified profit-sharing plan? (a) The employer, a closely
Which of the following situations might convince an employer to choose a nonqualified
retirement plan over a qualified profit-sharing plan?
(a)
The employer, a closely held C Corporation, is in the 15% income tax
bracket and the sole owner of the employer is in the 35% income tax
bracket.
(b)
The employer only wants to meet the organizations objectives of
attracting executives, retaining executives, and providing for a graceful
transition in company leadership. The employer is not concerned with
providing retirement benefits to the rank and file employees.
(c)
The employer is not willing to pay high administrative costs.
(d)
All of the above.
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