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.