Which of the following is True concerning employer funding of nonqualified deferred compensation plans?
A) Employers are required to invest salary deferred by employees in investments specified by the employees.
B) Employers are required to annually fund their deferred compensation obligations to employees.
C) Employers annually deduct the amount earned by employees under the plan.
D) Employers may discriminate in terms of who they allow to participate in the plan.

Question

Quizplus · Accepted Answer

Employers may discriminate in terms of who they allow to participate in nonqualified deferred compensation plans as long as the discrimination is not based on an employee's age, race, gender or other protected class. However, employers are not required to make annual contributions to the plan and do not have to invest employee contributions in specific investments. Employers also do not deduct the amount earned by employees under the plan annually.

Which of the Following Is True Concerning Employer Funding of Nonqualified