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Which one of these is a characteristic of a nonqualified deferred compensation plan? A) The employer takes a deduction for the contribution in the year
Which one of these is a characteristic of a nonqualified deferred compensation plan?
A)
The employer takes a deduction for the contribution in the year the employee receives the benefits.
B)
Informally funded escrow earnings accrue tax-deferred until distribution.
C)
Distributions are taxed at ordinary rates, with averaging available on lump sums.
D)
All nonqualified plans must satisfy ERISA and IRC requirements.
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