Question

Which of the following is a characteristic of employers offering a nonqualified deferred compensation plan to the employees?

a) Tax-Free Contributions
b) Immediate Vesting
c) Tax-Advantaged Growth
d) Delayed Taxation on Income

Answer 1

A characteristic of employers offering a nonqualified deferred compensation plan to employees is Delayed Taxation on Income.

Step-by-step explanation:

A characteristic of employers offering a nonqualified deferred compensation plan to employees is Delayed Taxation on Income. With a nonqualified deferred compensation plan, employees can defer paying taxes on their income until a later date, usually upon retirement or when they receive the compensation. This allows employees to potentially save on taxes by deferring them to a time when they may have a lower tax rate.

Other options listed in the question are not characteristics of nonqualified deferred compensation plans.